This “Temporary” Inflation is Turning into an Inflation Spiral

by Wolf Richter
Wolf Street

Get Used to Higher Inflation. My Thoughts on the Biggest Mess I’ve Seen in Decades.

This year, inflation blasted off with a vengeance, and the last four months have seen the hottest pace of inflation since the 1980s.

The consumer price index – the CPI – rose 5% year-over-year for May. The June reading will come out in a couple of days [update: June CPI came in at 5.4%]. 5% of annual inflation is bad enough. But the pace of inflation over the past four months has been much higher, clocking in at over 8% annualized.

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