The more you look at the inflation data, the worse they appear
Sticky prices are beginning to pick up, and sticky inflation is the highest in three decades
Most surreal is to discover that inflation is actually lower here in Mexico than it is north of the border. This is not at all a usual situation:
Rental inflation tends to show up with a lag
The shift to a belief in a rapid exit from tight monetary policy is intact. The reason for this, dolefully, is because a recession is seen as ever more of a working certainty.
The reaction in many financial markets to these awful data was surprisingly muted.
But to end positively, note that it is the nature of things for inflationary peaks to be over swiftly and followed by sharp declines.
History, going back more than a century, shows that inflation never stays as high as it is now for more than a matter of months (outside of wars and the 1970s stagflation)
John Authers Bloomberg 14 juli 2022
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