Here is additional insight on some of the factors baked into the inflation equation, as we continue a dialogue on how The Topic of Inflation is All the Rage and The Topic of Inflation is All the Rage- the Sequel.

“Inflation today is transitory” we are told by the Fed.  Meanwhile, we live through this economy and feel the cost pressure, don’t we?

June '21 CPI- Year Over Year

June ’21 CPI- Year Over Year

Now, in every economic period there are unique stories where we may see a supply shock of a particular item that causes an increase in market price, or a weather event that wipes out an agricultural crop that leads to a commodity price spike, or a labor union strike that effects an industry.  Any of the old timers remember the oil crisis of the early 1970’s? Now THAT was a supply shock and price inflation!

Looking at the chart above, we can certainly see a host of goods and services are spiking at the same time- this is probably more than a normal economy.  To be only “transitory”, as they say,  pricing is going to have to pull back quickly, with a big move backward.

Be careful out there!

~ Brian Kasal- The Leadership Matrix

If you enjoyed this post, please consider sharing it on your favorite platform below.