WMT - Buy The Dips: High Inflation Is Over
2024-06-24 07:45:00 ET
Summary
- Headline inflation is declining again.
- Real-time inflation is even lower, and expect it to drop further.
- This is particularly beneficial to REITs and we are buying the dips.
Co-produced by Austin Rogers
For the first time since July 2022, the month-over-month CPI rate was flat .
In May, once again, the primary item propping up the CPI was shelter.
As we've discussed many times, the shelter component of the CPI lags real-time changes in rents by about a year.
In May, the annualized core CPI was 2.0% YoY.
Core CPI ex-shelter was 1.9% YoY.
And headline CPI ex shelter was 2.1%.
Compared to a 3.25% YoY increase for the headline CPI in May, the CPI ex-shelter index rose only 2.13% YoY.
That's above the average CPI ex-shelter growth rate of 1.4% during the 2010s, but several disinflationary and deflationary trends within the CPI indicate that all inflation metrics -- headline, core, and ex-shelter -- should continue to come down over the remainder of this year. ...
Buy The Dips: High Inflation Is Over