Prices are falling. Put another away..... deflation. Yes deflation.
Sure the recent run up in prices... inflation... has proved sticky. Namely due to wages and the surprisingly strong and resilient job market.
And yet we have so many signs pointing to lower prices.
With the opening bell nearing. Lets focus on what the consumer sees, from a price perspective, almost every day. Its the prices at the grocery store. Corn, Soybeans, Wheat, and OATS have all rolled over. And continue to fall in a meaningful way.
Expect prices in the grocery stores to follow suit. Deflation.
Oat futures down over 50% from 2021 highs
By golly.
The grains are all down 20-55%+ from their record highs. With many looking like the downside still has a lot more room to go.
What does this deflationary pattern imply amid a FED that is likely done raising the FUNDS rate going forward?
I think the stock market is telling you exactly what that means going forward.
More on this tomorrow.
Have a great day