All eyes are on Thursday's CPI report as a higher-than-expected reading could keep the Fed in an ultra aggressive mindset. Here is what the market expects heading into the release.... Read More
During more tranquil economic periods, spikes in items such as crude oil or car prices are usually temporary and can more or less be ignored. Now, however, higher inflation is spreading across a growing portion of its subcomponents.... Read More
If current methodologies and weights were applied historically to CPI, current growth rates would be much closer to the all-time highs set in 1980.... Read More
A record 16 of 16 Fed officials reported upside risks to inflation in March, but this comes amidst high uncertainty.... Read More
The Fed can work to remove the inflation due to the excess demand from stimulus. The changes to consumption baskets are a trickier issue.... Read More
Base effects point to a peak in inflation this spring. But the real question is, "How fast does inflation recede?" If it does not fall quickly enough, the political pressure on the Fed could demand 5 or so rate hikes, plus QT, in the next year.... Read More
Those aged 60+ consistently have higher inflation expectations than those under 40.... Read More
Core inflation in the U.S. is among the highest in the developed world.... Read More
A record 15 of 18 Fed officials reported upside risks to inflation in December, but this comes amidst high uncertainty.... Read More
A breakdown of the biggest contributors to headline CPI's 5.4% rise in the year ending September... Read More
A growing portion of inflation's components are rising above the Fed's targeted rate of 2%+. Trimmed mean indices have gained in popularity as a result.... Read More
A breakdown of the biggest contributors to headline CPI's 5.3% rise in the year ending August... Read More
Energy costs were once again the biggest contributor to headline CPI. The degree to which rising shelter costs offset falling used car and truck prices will likely be a key determinant in future CPI releases.... Read More
Those aged 60+ consistently have higher inflation expectations than those under 40.... Read More
Energy was the biggest contributor to headline inflation in the year ending June, followed by used cars and trucks.... Read More
The Atlanta Fed breaks down CPI into 'sticky' and 'flexible' components.... Read More
We still believe the next big move in rates is higher. Inflation that is more than transitory has been our forecast for over a year now. We see no reason to change this.... Read More
Federal Reserve Officials utter the word "transitory" every time the subject of inflation comes up. Many measures suggest inflation expectations are rapidly rising. How long can the Fed wait before seeing what the market sees?... Read More
All signs point to inflation going significantly higher over the short term. Will this burst prove to be more than transitory? This is arguably the most important macro question of the year.... Read More
The signs of inflation rising beyond a base effect are unmistakable.... Read More