The index for all items less food and energy rose 0.6 percent in July, its largest increase since January 1991.  The index for motor vehicle insurance increased sharply in July, as it did the previous month. The indexes for shelter, communication, used cars and trucks, and medical care also increased in July, while the index for recreation declined.  –BLS, August 12th

Are you surprised?  The largest monthly increase since 1991 or the first back-to-back monthly prints of > = 0.6 percent prints since July 2008?  Moreover, it’s only the third distinct period of such high back-to-back monthly inflation prints since November 1990.

We get it, now is not the time to worry about an uptick in inflation when the global economy is on the verge of collapsing into a black hole.   There will be consequences, however.

No doubt an accelerated vaccine is great hope for and would be bullish for humanity but would it be bullish for markets?  Would the Fed panic with inflation now running at an annual rate of 3.7 percent over the past two months with such an enormous amount of stimulus in the economy?

Have The Principles Of Economics Been Repealed? 

Somebody from the woke crowd please tap us on the shoulder and wake us if the principles of economics have been repealed.

Money Supply Growth (M2) – Biweekly Y/Y % Growth