Jim Bianco highlights the evolution of inflation, focusing on the year-over-year change in CPI. He notes that inflation bottomed at 3.0% in June 2023, increased to 3.1 earlier this year, and is currently at 3.4. Bianco explains the concept of the base effect, emphasizing the measures from a year ago that will impact the inflation rate, which includes dropping a mix of zeros and point ones.

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