What’s Cooler than being Cool? inflation

March Inflation data underwhelmed economists’ projections, registering a 0.1% monthly rise from February. Expectations were 0.2%.

Notably, the energy index dropped 6.4% on a yearly basis, with gas prices plummeting over 17% from a year ago.

The cost of shelter (aka housing/rents/lodging away from home) rose over 8% year-over-year, and over 1% between January and March.

Car insurance rose substantially as insurers try to catch up to more traffic being back on the road and the higher cost of replacement parts. Auto Insurance is up 15% year-over-year.

Still, higher interest rates haven’t had much time to work their way to the housing or automotive market. Judging on past cycles, housing and rent costs could lag leading indicators like new home starts and lending activity by 2-3 years. If that’s the case, the battle may have already been fought as shelter is the final domino we’re waiting on for inflation (from a CPI standpoint) to finally subside.