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What is MDEF™ Investing? Strategy before tactics. Strategic investments dictate tactical actions in the Metals, Defense, Energy & Food sectors.

- Jeffrey C. Borneman

Inflation News: CPI Up .3% June - Mostly In Energy

Jeffrey C. Borneman | July 22, 2014

"The Labor Department said on Tuesday its Consumer Price Index increased 0.3 percent last month, with gasoline accounting for two-thirds of the gain, after May's 0.4 percent rise," reports Reuters. And this is good ..?

"Stripping out food and energy prices, the so-called core CPI rose 0.1 percent, slowing after May's 0.3 percent increase." Which would be fine if every human didn't require Food and Energy. 

Just a reminder to investors that the CPI has undergone 27 revisions (how it measures Inflation) since the Carter Administration. You see, we're not supposed to understand how Inflation works; how it is the hidden tax everyone must pay (regressive), and most importantly; how Inflation is viewed by central banks as the crucial tool in controlling currencies and economies. 

I've written (here and here) that Inflation is desperately sought by central banks and the IMF. Here is how the topic of Inflation is couched so consumers assume its necessity: "Inflation is creeping up as the economy's recovery becomes more durable, a welcome development for some Federal Reserve officials who had worried that price pressures were too low."

Investors should read the recap linked below, but do play a round of Spot-the-DEMAND. If you would like to know how the MDEF™ Investing strategy positions clients to take advantage of Inflationary pressures, or if you'd like a no-commitment portfolio review, do contact me directly:

Read the Original Article

U.S. consumer inflation rises on high gasoline prices

By: of Reuters Article Date: 2014-07-22

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