Another Reopening Fueled Surge in CPI and Then Some

The Consumer Price Index surged 0.9% in June, lifting the year-ago rate to 5.4%. Price gains continued to be tied to a few relatively small categories, but there is increasing evidence that inflation is broadening out beyond categories at the center of the reopening. Despite another surprisingly strong print, today’s report still is unlikely to sway Fed officials in their thinking on inflation.

Time to Take the Bus The Consumer Price Index (CPI) surged 0.9% as the costs of fully reopening an economy continue to mount. Over the past year, inflation is up 5.4%, a feat made all the more impressive by base effects beginning to get harder after prices first started to rebound last June (see chart). Prices have risen at an eye-popping 9.7% annualized pace the past three months as businesses are still struggling to meet surging demand… READ FULL ARTICLE>>