Taps Coogan – March 3rd, 2022

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Wolf Richter, creator of the wonderful Wolf Street website – one of the best finance sites on the web, recently spoke with the Financial Survival Network’s Kerry Lutz about the trends he sees in inflation across the nation.

In a wide ranging interview, perhaps the most important part is Mr. Richter’s view the historic rise in housing and rent costs are likely to keep CPI high for the foreseeable future:

“The huge spike in asking rents that we are now seeing will take about 24 months to completely filter into the CPI figures… we’ve got this huge spike in asking rents… and it will impact our inflation figures for the next two years, regardless of what happens in the market. Even if rents don’t go up any more, CPI will go up based on this and I don’t think rents are going to stop going up at this point. I think they are going to continue to go up though maybe not at this incredible rate. People are saying inflation is going to go back down. Well no, not necessarily… Housing is 32% of CPI. It’s all based on two factors that are tracking rents…”

There is more to the interview, so enjoy it above. 

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