After reading the media reports, I’ve done my style of analysis on the Consumer Price Index. I don’t care so much  about the annual numbers. Twelve months ago, it was a different world. So I look at an average of the last three months change in inflation. But I don’t analyze the overall number — the headline number. There’s too much variation for that to be meaningful. Instead, I look at the report’s accompanying table that gives detailed list of 330 items. Of those items, 218 rose, or 66%; 39 fell, or 12%; and 73 were unchanged, 22%.

The highest inflation metric increase was +4.43 on electronic equipment. No surprise, with the large Chinese involvement in electronic device manufacture and the degree of tariffs imposed on that country by the present administration. The lowest was 7.16 on (drumroll) eggs. Also no surprise. The increase in egg prices was caused by a virus that devastated our chicken population. The sick chickens died. The healthy chickens are back to laying eggs. Anyone who tries to tell you that it was economic mismanagement is lying. It was a natural disaster. A chicken Covid or Black Death, so to speak.

All in all, as a stock and options trading who wins and loses, in part, because of the economy, this is not a happy picture. My plan: Pinch my pennies and lay low while the storm washes in.

By Tim Bovee, Portland, Oregon, July 15, 2025

Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

License

Based on a work at www.timbovee.com.