Last Week: -1.04%
YTD: 7.60%
1 Year: 32.63%
Dow Jones Industrial Average
Last Week: -0.73%
YTD: 3.16%
1 Year: 23.87%
Last Week: -1.82%
YTD: 6.25%
1 Year: 38.73%
Last Week: -1.22%
YTD: 0.85%
1 Year: 19.98%
YTD: 8.95%
1 Year: 42.73%
YTD: 5.26%
1 Year: 22.14%
Consumer Prices Rise
The consumer price index, which measures the prices of goods and services, increased 0.4% for the month and 3.2% from this time last year. The monthly number came in on target with expectations, while the 12-month figure came in slightly higher than forecasted. The main increase came from energy prices, which increased 2.3%. Food costs were flat, while shelter costs climbed 0.4%. With inflation sticking around, the Fed likely won’t decrease interest rates until at least summer and maybe even longer.
Cocoa Prices Skyrocket
Cocoa prices have nearly doubled due to a lack of supply and an abundance of demand. Chocolate prices for consumers are starting to see a huge increase as a result. The main cocoa-growing region is near the equator in Western Africa. Cocoa crops have been hit hard with diseases, and extreme weather has put a strain on the existing plants. This region produces over 75% of the world’s cocoa supply. Our next major holiday, Easter, is a sizeable chocolate-consuming holiday, and we will likely see another significant price increase. There seems to be no end in sight with a lack of new planting to replenish growing demand and battered plants.
Wholesale Inflation
The producer price index, which measures the pipeline costs for raw, intermediate, and finished goods, rose 0.6% for the month. This was double the expected rise. The year-over-year increase was 1.6%, the biggest jump since September 2023. Retail sales increased less than expected, coming in at 0.6%. This sent most major U.S. stock indices lower last week. The PPI is considered a leading indicator for inflation, as it determines costs early in the supply chain that will later be felt by consumers. This is a key inflation measure used by the Fed and will help them determine when to start lowering interest rates.
