Inflation: Velocity and Acceleration Turn Positive in March

A quick update to yesterday's post

Yesterday, I published a chart showing velocity and acceleration of inflation. That chart showed acceleration near zero, meaning velocity would remain steady at a monthly increase of 0.5 percentage points.

Inflation Is Getting Worse, Not Better

But the March CPI released moments ago shows acceleration up, pulling velocity up to 0.75 from 0.5. The result was a catastrophic headline inflation of 8.5%—the highest since 1981.

So, add about 10% to everything I said in yesterday’s post, and we’ll cal it even.