Transitory or Not, Inflation Is Here. It Could Be Much Higher Than You Realize

Core Inflation Surges the Most in Nearly 30 Years
Wholesale Used Vehicle Prices Maintain Record-Setting Pace

Hope for the Best, Prepare for the Worst

I think policymakers and analysts are just as torn about the potential longevity of this current rash of inflation. The Federal Reserve insists on describing it as “transitory,” mostly in an effort to allay investors’ fears and calm markets.

On the Road Again

At the same time that new vehicles are in short supply, Americans have begun to travel as much as they ever have, a key driver behind rising fuel prices. According to the travel industry news website Skift, the number of Americans who traveled in May surpassed those who traveled in February 2020, before the pandemic. More than 42% of Americans said they traveled within the U.S., compared to 40.5% 16 months ago.

Americans Traveling in May Surpassed Pre-Pandemic Levels

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Frank Holmes

Frank Holmes

Frank Holmes is the CEO and chief investment officer of U.S. Global Investors, an innovative investment manager with vast experience in global markets.