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Data from the BLS, Chart by Mish

The BLS reports the Consumer Price Index rose 0.2 percent in October.

CPI Month-Over-Month Details

• The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent on a seasonally adjusted basis.
• The index for shelter rose 0.4 percent. Rent of primary residence rose 0.3 percent and owners’ equivalent rent was up 0.4 percent.
• The food at home index increased 0.1 percent and the food away from home index rose 0.2 percent over the month.
• The index for all items less food and energy rose 0.3 percent.
• The energy index was flat. Gasoline was down 0.9 percent.
• Medical care commodities fell 0.2 percent and medical care services rose 0.4 percent. This is another bit of bad news because services have a much bigger weight than commodities, 6.5 percent vs 1.5 percent.

CPI Month-Over-Month Rent and OER

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Shelter is 36.5 percent of the CPI. The increase in shelter was half of the overall increase.

CPI and PCE Year-Over-Year Percent Change

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Year-Over-Year Details

• CPI: 2.6 percent
• CPI Excluding Food and Energy: 3.3 percent
• Rent: 4.6 percent
• Shelter: 4.9 percent
• Food and Beverages: 2.1 percent

That’s roughly how the average economist views things. The next chart is how the average person views things.

CPI Indexes

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Renters are primarily young voters, Blacks, and Hispanics.

My thesis all year was that Trump was likely to gain in those groups and if so, he would win the election.

It was an accurate call.

Why Trump Won the Election in One Clear Picture

Please consider Why Trump Won the Election in One Clear Picture

There is massive Democrat soul searching today. Hardly anyone will get it right. This is despite huge evidence all year long.

And they didn’t get it right.

November 8: Harvard Professor Says People Are Better Off Than They Think, Blames Media for Harris Loss

Jason Furman, a Harvard professor and Chair of Obama’s CEA lectures people on how well off they are.

November 11: Allan Lichtman Blames Elon Musk “Director of Misinformation” for Huge Democrat Loss

This is my Hoot of the Day, candidate for Hoot of the Year.

Now What?

I am fearful of 60 percent tariffs and mass deportations.

No economist that I am aware of has crunched any numbers of what mass deportations might do. So I did.

Here are my thoughts: The Economic Foolishness of “Deport All the Illegal Immigrants” In Three Pictures

And what about the deficit? Here’s my question: Can Republicans Pass Key Legislation With a Miniscule House Majority?

The stock market may like Trump, but he does not inherit a very good economy for the renters and non asset holders.

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