March 2022 Inflation Will Be Worst Since August 1973

US Regular All Formulations Gasoline Prices have increased by 23% over the past month, which is 4 standard deviations above average.

This exceeds the previous record (since 1990) that was set in September 2005 when gasoline increased by 22.5%.

In September 2005, U.S price inflation on a month-over-month basis hit its highest level of the last 40 years of 1.222%.

During the prior month of August 2005, U.S price inflation on a month-over-month basis was only 0.512% so a 22.5% rise in gasoline prices caused the month-over-month price inflation rate to increase by 0.71%.

In February 2022, U.S price inflation on a month-over-month basis was 0.913% and we are estimating that a 23% rise in gasoline prices in March 2022 will cause the month-over-month price inflation rate to increase by an additional 0.726%.

We are estimating that the March 2022 month-over-month price inflation rate will reach 1.64% its highest level since August 1973.

On a year-over-year basis, the U.S. price inflation rate for March 2022 is likely to reach 8.87% for an increase of 100 basis points from 7.87% in February 2022.

Despite the Federal Reserve raising the Fed Funds Rate by 25 basis points this week, the Real Fed Funds Rate will actually decline by 75 basis points this month to a new all-time low!

In August 1973, the last time month-over-month U.S. price inflation reached a level comparable to what March 2022 month-over-month price inflation will be, gold gained by 90.96% within the following eight months!

The conditions have never been better for a massive gold rally in the upcoming months and North Peak Resources (TSXV: NPR) or BTLLF on the U.S. OTC will likely become the largest percentage gainer!

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 211,000 shares of NPR in the open market and intends to sell his position within the next four months at much higher share prices. He may also add additional NPR shares to his position at any time. This message is meant for informational and educational purposes only and does not provide investment advice.