What changed
WHAT BLOOMBERG PRICE PROJECT (NOW COVERING 85% OF THE BASKET) IS SAYING ABOUT MAY’S CPI. @TDURIE95
FLAGGING:
-PICKUP IN COMPUTER RELATED GOODS (THAT MEMORY CHIP AND NAND SHORTAGE)
-STRONG AIRFARES
-ACCELERATED INFLATION IN SPORTS EQUIPMENT AND MAJOR APPLIANCES (BASICALLY STUFF THAT HAS HIGH METAL COMPONENT—THIS MAY SEEM LIKE TARIFFS PASS THROUGH BUT IS NOT)
AND YET…
CORE CPI CLOSE TO THE PACE CONSISTENT WITH FED’S 2% INFLATION TARGET
HOW TO SQUARE?
WEAK RECREATION SERVICES INFLATION.
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Why it matters
Bloomberg Price Project covering 85% of basket signals May CPI pickup in memory chips, airfares, and appliances.