The CPI report in the United States was a horror show for Team Transitory. Although there were other areas with jumpy prices (e.g., food prices), I think that the housing component (above) is the part I am most concerned about in the near run. The housing component of CPI is based on surveys that are smoothed. This means that there is a decent amount of momentum behind price trends. In the chart, I show the 6-month rate of change versus the annual rate of inflation.
U.S. CPI: Ouch
U.S. CPI: Ouch
U.S. CPI: Ouch
The CPI report in the United States was a horror show for Team Transitory. Although there were other areas with jumpy prices (e.g., food prices), I think that the housing component (above) is the part I am most concerned about in the near run. The housing component of CPI is based on surveys that are smoothed. This means that there is a decent amount of momentum behind price trends. In the chart, I show the 6-month rate of change versus the annual rate of inflation.