re: CPI increase came in at 4.2% vs expected 3.6%.

We knew the Y/Y would be high due to base effects, and I think everyone here knows my longer term deflationary outlook, but the M/M prints, particularly for Core, are pretty hot. Expect the market to start pricing in some tapering and/or rate hikes, and expect bond yields to rally. We’ll see what those higher rates do to equities trading at all time highs and equity bulls screaming “this time is different,” as if we don’t hear that in every bubble.

it went up 0.9% month over month

in 2021 we have risen by 0.3%, 0.4%, 0.6%, and 0.8%.

that annualizes to a rise of 6%, nearly 3x over the target

this is just getting started... and if the 0.9% continues we will see over 20% inflation on the year