Inflation is Back and Higher than Expected

Despite previous predictions of low inflation, recent data shows that inflation is on the rise. The Bureau of Labor Statistics reported that headline CPI increased at an annualized pace of 3.7%, almost three times higher than the previous month. Core CPI, which excludes food and energy, also increased at an annualized rate of 3.8%. The so-called super core inflation, which excludes housing costs, is even worse, hitting almost 5% annualized. These inflation rates are higher than anticipated, signaling that inflation is not transitory as previously believed. The main factors contributing to this unexpected inflation include continued federal government spending and excess money circulating on Wall Street.