 inflation. Inflation is taking over the market, ladies and gentlemen. Today, dominating the headlines. Everybody waiting to hear from the Bureau of Labor Statistics, what in the world is going on with inflation? As we all know, inflation is at the highest it's ever been throughout my lifetime. I'm 37 years old. Inflation just hit an all-time high since 1982. I was born in 1984, so this is the first time me actually living in a market of inflation. So to speak on inflation, high inflation, I have to go back and look at old data. I got to say this, ladies and gentlemen, the pace we're on by this summertime, we're gonna be in double digits. But before we go any further, make sure you hit that like, subscribe, comment, and share button, and as always get ready. This is the Prince of Investment. My name is Prince Dykes. Once again, ladies and gentlemen, boys and girls and children of all ages, you are now tuned into the Investor Show. It's always, this is your greatest host, the Prince of Investing coming to you guys and girls live all the way from a beautiful city and state of Denver, Colorado, via Halalulu, Hawaii. And yes, as you can see the topic, the rise in inflation, that's what we're going to talk about today. So today, the Bureau of Labor Statistics released a report today called the CPI, the Consumer Price Index Summary. The Consumer Price Index Summary tells us what, aka what we know as inflation. If you don't know what inflation is, or you're not familiar with it, get used to it because it's not going to wear anytime soon. You can find this report on BLS.gov. That is BLS.gov. This is the Bureau of Labor Statistics.gov. They released a Consumer Price Index report every month to let us know what's going on with inflation. And as you know, inflation hit 7.5% overall, the highest inflation we had since 1982. In 1982, we ran into a high inflation when inflation hit double digits of 13% at its peak. I think it was about 13.2% before it started to taper down. And the question I got to ask everybody out there that's catching live on a playback, do you think inflation will hit double digits? And if so, when will it hit double digits? As you know, the Federal Reserve Chair, Jerome Powell, aka the Feds, they have came out and said we're standing by to use our array of tools to combat this thing called inflation. Ladies and gentlemen, while we have a high inflation, inflation was induced by our economy. You remember we had this thing called the pandemic that we're kind of still in right now? When this pandemic took off, you remember they lowered interest rates. They lowered interest rates to an all-time low in a way to stimulate the economy. When you lower interest rates, money becomes easier to borrow. Companies like to borrow more money. Money is easier to borrow. Also, money is very cheap to borrow. So companies use money to go out, build, invest, companies, people, whatever the case may be, lend out money. Hey, let's open up the floodgates. Let's make money easier to borrow. Also, the government came back. Remember those trillion dollar stimulus package? $1.9 trillion has been approved by Congress, the largest stimulus package ever. Then the next month is like, oh yeah, another trillion dollar package has been to stimulate the economy. You heard about these things called PPP loans that businesses got, and you saw that average America gets stimulus checks. Those stimulus checks that popped up in your banking account? Those were those trillion dollars went and probably a ton of other places that we're not familiar. I actually read that report, but it's money goes so many places that's supposed to do things that end up doing nothing into somebody else's pockets. You know how that rolled. Anywhere you find money, you will find some form of corruption. That's just my honest belief. Now it's just part of human nature. So anyway, let's get back to the point, the situation in hand. Inflation, when you push this much money into the economy out of the blue, you have people sitting at home, money's been pushed, you know, then President Biden gets elected and he comes in and says, hey, I can out top President Trump. Here's my stimulus package. He passed out a trillion dollar stimulus package, passes out money, and also he gives people back their income tax credit, meaning this is the child income tax credit. Well, child credit, I'm sorry, not income tax credit, but a child credit. So for every child you had, you got an additional $250 that just popped up in your bank account to do whatever you wanted to do at your leisure. Ladies and gentlemen, you probably saw it. You got that child tax credit coming in. Also, now only did you get a child tax credit going in? You also had the child tax credit coming in. You also had every person, I think every person got a $1,200 check at least once or twice. So you have low interest rates and you're essentially just printing money out of the thin air and giving it to people. This is always going to have an impact on inflation. Inflation is the cost of goods and services as the price and the cost of goods and services as they rise over a period of time. For prime example, why is it so important? Because what is a million dollars really worth anything if a loaf of bread costs us $100,000? This was an act to war what countries would do to each other. Back in, it was very popular in World War II where you will see countries would go in, they would print a bunch of counterfeit money of a country and then just dump it on the shores. This would cause massive inflation and wreck the economy. This is why it's red hot. This is why it's very important. Now, we talked about how we got here. Now that we're here, what are we going to do about it? First thing the Federal Reserve said they're going to do, they said, hey, we're standing by. We're going to raise interest rates. Also, on top of raising interest rates, we're going to taper back our bond purchasing program. That's an asset purchasing program where the Federal Government is purchasing assets. Let's just imagine if somebody would, in your neighborhood, like to say, I own a house in my neighborhood and the government prints money and comes in and just started buying houses in my neighborhood like crazy. What is that going to do to the value of my house? It's going to push the value of my house up and the government slows down buying houses in my neighborhood. It's going to slowly won't decrease the value of my house, but the price, the valued estimated price maybe dropped a little bit. So, supply and demand. So, you have a buyer that's strong. The government, that's what they were doing, aka pumping money into the market. That's the simplest way to put it. They just print money, pump it into the market. They brought stocks, they brought assets, so now they're using fancy words of, hey, we're going to get some of these assets off our balance sheets and we're going to taper our asset purchasing, meaning that, hey, we're going to stop buying so much stuff and we're going to decrease the amount of stuff that we're buying to cool off the market. So, they're doing that. They started to slow down the asset purchasing and now the Federal Government, they haven't came in yet, but we expect by next month, the Federal Reserve will probably raise interest rate by 0.25. So, when we have this going on, now it's going to get us to our juicer part. Now, we understand what happened and what the Federal Reserve is talking about doing. They announced, I think that was November, they started tapering on bonds, their bond purchasing asset purchasing program. Now, the Federal Government came out last month and said, hey, we're standing by to raise those interest rates we needed. So, we had inflation going on and it's my belief, ladies and gentlemen, we're going to double digit inflation by the summertime because the Federal Reserve, yes, they do have tools, yes, they were interact, they were engaged those tools and utilized those tools, but it's not just imagine if you're driving down the road at 60 miles power and you slam on the brakes, do you stop automatically? No, you slide a little bit, then you stop. If you drop down the road at 60 miles power and you slowly ease on the brakes, do you stop automatically or you stop later on? You know you're going to stop it on. I think that they're going to raise the interest rates slowly over time to chase down inflation and it may be it's going to take a while before we see that to start to reverse inflation or to even see inflation stall out. I think by the summertime, the pace we're definitely on right now, we'll be at inflation at 10 percent July, August timeframe. So, we'll stand by for that. Late summer is when I'm projecting, we'll get our double digit inflation the first time in about 30, about 40 years. It'd be 40 years by that time. So, going from 1982 all the way to 2022. So, what we're going to do today ladies and gentlemen, we're going to go through, we're going to go to the Bureau of Labor Statistics. You know, we're going to take a quick break. I mean, we're going to take a very quick break and after that break, we're going to head over to the Bureau of Labor Statistics dot gov and we're going to review the consumer price index that came out this morning that was released to talk about inflation. Y'all stay tuned. We're going to take a quick break. We'll be right back. And we're back here live with the Prince of Investment. Coming to you guys and girls live all the way from a beautiful city and state of Denver, Colorado. Coming to you guys live via Howlulu, Hawaii. Beautiful city of Denver, Colorado via Howlulu, Hawaii. Sometimes I get mixed up, but here we're back. Now, we're going to talk about, earlier we talked about the beginning of the show before the break. We talked about inflation, what it was, how it started, what induced this high inflation that we're currently experiencing and what the Federal Reserve is talking about doing to combat that inflation. Now, let's get into the nitty-gritty. The report that came out today, February 10th, today at 8 30 a.m. east coast time, about six hours ago, something like that. So anyway, ladies and gentlemen, let's get straight down into it. This is a consumer price index. The consumer price index, they're saying that inflation in January rose by 0.6 percent in January on a seasonal adjusted basis. Now, 0.6, over the last, over the last 10 months, this is the seventh time over the last 10 months, inflation has raised by 0.5 percent. That means that every month, for the last seven months, inflation has raised by 0.5 percent. Ladies and gentlemen, we are now at 7.5 percent inflation. Now that we are at 7.5 percent inflation, this means that we will be in a double digits. If we keep on this pace in February, if we hit 0.5 in March, we hit 0.5 in April and May and June and July, you can do the math and say, well, the pace we're on. In January, it rose by 0.06 on inflation. Now, let's talk about the areas that got hit the most. The highest, the increase of indexes for food, energy, food, it was food, energy, and shelter were the largest contributors to seasonal, unjusted, all items increases. The food index rose by 0.9 in January, following a 0.5 percent increase in December. The energy index increased by 0.9 percent over the month with the increase in the electricity index being partially offset by the declines and gasoline index and the natural gas index. The index for all items, less food, energy rose by 0.6 percent in January. Now, here we go. Let's go down here. Let's see who had the highest inflation rate. We can look here and see coming in in January, the person that had the sector that had the highest inflation at 9.5, get that 9.5. 9.5 percent is fuel oil. Why is this important? If inflation is at 7.5 percent, what is the average savings account? The average savings account in America in 2021 was 0.06. 0.06, not 0.6. Inflation for January was 0.6. Inflation, inflation overall is 7.5. Annually, annually, the average savings account is getting 0.06. It doesn't take a mathematician to say if my savings account is getting 0.6, but my investment account is getting, not an investment account, if my savings account is getting 0.6, and inflation is at 7.5, you're actually losing money. You're losing about 7 percent a year with the current inflation rate. If it stays at, what is that now? So, investing is not an option. At 7.5 and inflation at 0.06, investing is not optional. It's investor lose right now, very big when you come down to the inflationary marks. So, the number one place was 9.5 percent that came from fuel oil. Now, we know historically we got things going overseas, and we have things going overseas. This usually in the Middle East, especially with the Ukrainian-Russia deal, if things go down over there, usually oil prices go high, and I mean extremely high, ladies and gentlemen. So, I'm anticipating a high energy run-up. I talked to some of my old school friends, come from the 70s and 80s and asked them, living in a high inflationary environment, what went up? We've seen fuel oil, and we're seeing that right now, 9.5 percent, we're filling it at the pump. This is called invisible tax. This is the tax that's not taken out of your check. It's not taken out of your bank account. This tax is taken from your, this tax is taken when you go to buy. The price of your clothes, your shoes, your food, things you don't realize. This is where your money is going. This is called purchasing power. You have one dollar, how powerful is that dollar? The dollar is becoming weaker, ladies and gentlemen, as inflation goes higher. It's the invisible tax. It's the tax on your money that you can't see. You go to the grocery store, you spend $200, you look down at your bag and say, man, $200 where? That's inflation. But if you go back years ago, you'll see how much you could have brought. So let's take a little further look. Who had the lowest inflation in January? January, the person had the lowest inflation in the sector, we're looking at it here. It's at a 0.5, no 0.3 percent. I'm sorry, a negative 0.5 was utility piped gas. Utility piped gas actually went down. Good, but fuel oil, fuel oil went up. Gas piped gas services went down, which is pretty good to say. Now looking at this also coming in number two was electricity. Electricity utilities are one of those things that I don't shop around my electricity bill. You just move to an area, whatever bill they give you, if they say you charged it and you did it, then you just did it. That was it, ladies and gentlemen. So you have to think about this. We have fuel oil, we have prices of gas going up, what's happening, what's going on in the world, 7.5 percent. Let's take a look and see some a little bit more here. The food index increased by 0.9 that we already talked about. The food away from home rose by 0.7. We got energy at 0.9. All items less energy, this is the number that everybody tracks. This came in, it rose by 0.6 percent. That's higher than the average savings account in one month alone in January. So bringing everybody up to 7.5. The shelter index increased by 0.3 percent as well. The medical care index rose by 0.7 percent in January. The index was hospital services increased by 0.5 percent and the index for prescription drugs rose by 1.3 percent. While the index was physician services declined by 0.1 percent. Only a few indexes decreased in January. Let's talk about the ones who didn't increase. The only a few indexes decreased in January. Among those that did that were were lodging away from home, lodging away from home like hotels. I think hotels are on a decline anyway. Lodging away from home is a negative 3.9 percent and wireless telephone services, they went down by 0.1 percent. The index for new car index, the new vehicles was unchanged over the month. So new vehicles stayed the same. You saw lodging away from home aka hotels and cell phone services actually decreased. Pretty pretty pretty interesting. These are things I can't live without. I have to have my phone. I have to have electricity so I don't really get a chance to like oh you know what let me shop around for my electricity unless I just went green and got panels on my house. But anyway ladies and gentlemen that's going to conclude today's episode. Hopefully you guys and girls got to tonight's episode talking about reviewing from the Bureau of Labor Statistics dot gov going over the consumer price index that affects us every day. We saw that few oil went up 9.5 percent alone in January and we saw that the declines in lodging and new cars stayed the same and what was the other index that was cell phones cell phones actually decreased. So cell phones decreased hotels decreased and few not few but new cars. Few oil the highest gas actually kind of went down a little bit but not a whole lot. But a lot of things going on now we have to stand by when we see inflation inflation go up we seen the market dump a little bit. So that's something to keep an eye on. But anyway ladies and gentlemen inflation is at 7.5 percent. My name is Prince Dykes. This is the Prince of Investment and to the next video podcast cartoon book or whatever else crazy you see me do across the road across the globe don't forget to hit that like subscribe comment and share button. Peace be safe. I'm out and thank you.