Prices Climb At Fastest Pace Since 1982… But It Could Have Been Worse | ZeroHedge
Francesco Abbruzzino, The Uncensored Report, LLC
Having surged faster than expected in 7 of the last 8 months, all eyes are on this morning’s Consumer Price Index as this is the last big release ahead of next Wednesday’s Federal Reserve decision, where Deutsche Bank economists (among many others) are expecting they’ll double the pace of tapering. Chair Powell himself reinforced those expectations in recent testimony, stopping just shy of unilaterally announcing the faster taper. Crucially, he noted this CPI print and the evolution of the virus were potential roadblocks to a faster taper next week.
And sure enough, CPI printed +6.8% YoY – right as expected and the fastest rate of increase since 1982…
In another blow for team transitory, the drivers of inflation were increasingly broad-based, rather than just in a few categories affected by the pandemic. Both Goods and Services costs rose, as did Food and Energy prices…
Under the hood, everything rose in price…