Yesterday brought more discomfort than relief, with the CPI leaving hardly anyone unscathed – including the Fed, as we’ve elaborated in our recent review (available here).

Prices for shelter, medical care, and transportation have all spiked, leaving the expected summer rate cuts hanging by a thread.

Chart 1: US CPI Decomposed

January may prove to be a New Year fluke we at least have to accept that there are plenty of forwarding indicators indicating otherwise.