OTCPK:PGMFF - Post by User
Comment by
porc2019on Jun 11, 2021 7:47pm
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Post# 33376831
RE:RE:Cpi report points to transitory inflation?
RE:RE:Cpi report points to transitory inflation? "You were reading the wrong CPI report. Inflation percentage rate increased in May over April. "
False. Read what I wrote. I said the MONTH OVER MONTH inflation rate came in LOWER than the one in APRIL. In April mom inflation rate was 0.8%. In May it DECLINED to 0.6%. If it declines again in June (next report) it will be at 0.4% which will be back down to the upper end of the range mom was over the past decade.
You are citing yearly numbers which I dont care about, since they have heavily distorted by base effect (comparing versus crashed pandemic panic prices). Going forward these base effects will reduce more and more and thus the year over year CPI number will decline. 5% might have been the high already.
Gold sold off today and yields crashed yesterday because the CPI report supported the view that inflation is TRANSITORY as the mom numbers DECLINED. Thats exactly what you would expect if the inflation rate was transitory.