Inflation and GDP Watch

A national look at inflation shows a continued slow descent from our June 2022 peak of 9.1% annualize rate. The mid-May report from the US Bureau of Labor Statistics shows the Los Angeles – Long Beach – Anaheim region at a 3.8% annual rate. This breaks the trend of decreases in inflation since January by a slight 0.1%. Regional Commissioner Chris Rosenlund attributed the bump to the increase in housing costs.

The good news of our nation’s Gross Domestic Product was adjusted up 0.2% for the Q1 2023 to 1.3%. The Bureau of Economic Analysis (BEA) for the federal government posted the revision upward May 25. This was led by increases in goods, services, accommodations, financial services and insurance. Slowing things down were decreases during the quarter in inventory investment. This is the third consecutive quarter of growth since the declines in Q1 and Q2 in 2022. The not so good news is the three positive quarters have stair stepped down from 3.2% to Q1 2023’s 1.3%. 

A comparison of food prices in the US and European Union shows that it could be worse. Food prices in Britain and Europe rose 19% in the past 12 months with key products (cheese, eggs, olive oil, and sugar) north of this percent. The US experienced a 7.7% growth in food prices during the same period.

Please give me a call at Premier Funding Network to answer any of your mortgage questions at 714-283-9900.

 


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