Despite the Fed’s insistence that the present jump in inflation readings is “transient” and “temporary”, indications of widespread inflation are becoming so numerous as to be overwhelming. Deutsche Bank maintains a data series it calls the “Inflation Data Surprises Index”, which monitors unexpectedly-high or –low inflation reports across the economy. The current readings are the highest in the 20-year history of the index. Deutsche Bank strategist Jim Reid described the last 10 data points as “almost off the chart”. (Chart from Deutsche Bank)
Jeffrey Cerny