Ep. 22: This Month’s CPI Report - Balls in the Air

Another month, another 40+-year high in inflation. 7.9% y/y for headline, 6.4% on core, and we're not yet at the peak. Moreover, the peak is likely to be broader and not sharp, because inflation has infected the whole basket and changed the equilibrium that we are going to recede to. It's as if a juggler has moved from juggling two balls to juggling five; that is a stable equilibrium and will resist moving back. And the Fed is probably going to be careful before upsetting the juggler too much (the Inflation Guy really had to work hard to resist a balls pun).