U.S. inflation rate rises to 13-year high of 5.4%

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There was a fun internal analysis by the Fed that talked about how the monetarist definition of inflation is far too simple, and that a lot of internal models have been getting worse at predicting inflation. Not a good look if macroeconomists are much less able to predict/understand inflation…


YoY comps are absolutely meaningless because economic activity in 2020 was severely impacted by the pandemic and continues to be so. What’s the 2 year CAGR comparison to same period 2019?


What is very interesting to me, is how this sub kept saying over the past few months that inflation is indeed transitorily and is coming down. Yet I continue to see prices for basics goods go up. How can so many economists be so wrong.


πŸ‡ΊπŸ‡Έ CPI Inflation Rate YoY (SEP) Actual: 5.4% Expected: 5.3% Previous: 5.3% β€”β€”β€”β€”β€”β€”β€”β€”β€” πŸ‡ΊπŸ‡Έ CPI Inflation Rate MoM (SEP) Actual: 0.4% Expected: 0.3% Previous: 0.3% β€”β€”β€”β€”β€”β€”β€”β€”β€” πŸ‡ΊπŸ‡Έ Core CPI Inflation Rate YoY (SEP) Actual: 4% Expected: 4% Previous: 4% β€”β€”β€”β€”β€”β€”β€”β€”β€” πŸ‡ΊπŸ‡Έ Core CPI Inflation Rate MoM (SEP) Actual: 0.2% Expected: 0.2% Previous: 0.1%


A good durable dose of inflation would hit the mortgage origination market hard and take a lot of the steam out of the nonstop frenzy in housing. People might actually be able to buy a home again without spending 50% of their gross income. Tighter money would also make speculation less safe and take some of the froth out of asset markets. As much as it’s kinda scary because we haven’t had to face it in so long I think an occasional bout of inflation is a good thing.