Inflation Takes a Dive! Is This the End of the Empire's Economic Troubles?!

A Surprise To Be Sure But a Welcome One?

The Force is… balanced? The Bureau of Labor Statistics has delivered news that even I Darth Vader find…intriguing. Consumer price inflation has eased more than anticipated in March. A surprise to be sure but a welcome one perhaps? The consumer price index that broad measure of economic suffering... I mean goods and services has fallen 0.1%. It seems the Emperor or should I say President Trump is trying to bring balance to the Force... or at least the economy.

The Empire Strikes Back... With Tariffs!

While these numbers are lower the Emperor is now preparing to launch tariffs against U.S. trading partners. A bold move! Wall Street had been looking for headline inflation of 2.6% and core at 3%. But these numbers fell short of that mark. Perhaps the Emperor is attempting to use tariffs as a weapon to control the economy a tactic I know well. As I've always said 'I find your lack of faith disturbing.' in the Emperor's strategy.

Energy Prices Slump: A Victory for the Rebellion?

Slumping energy prices have played a significant role in keeping inflation in check. Gasoline prices have plummeted by 6.3% dragging the broader energy index down by 2.4%. 'The Force is strong with this one,' as they say. Food prices however are climbing at 0.4%. The price of eggs has increased almost 60.4% from a year ago. This is outrageous! How will the Empire afford breakfast?!

Shelter Prices: A Glimmer of Hope?

Even the notoriously stubborn shelter prices have shown signs of weakness increasing by just 0.2% in March. Perhaps there is still good in this economy. New vehicle costs increased just 0.1% ahead of the tariffs that are expected to hit the auto industry hard. I can only imagine what the prices for TIE fighters are going to be now. The Emperor is truly testing the limits of the galaxy.

The Emperor's Tariff Gambit: A New Hope or a Phantom Menace?

Trump has delayed parts of his tariff plans opting instead for a 10% levy on all imports and a 90 day negotiation window. He has called on the Federal Reserve to lower interest rates. However the central bank officials are hesitant citing policy uncertainty. It seems the Emperor's plans are still in flux. Economists expect a bump in inflation though that's less clear now that Trump has opened the negotiation window. The economy may be headed for the dark side.

A Call to Arms (and Stocks)!

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