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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.
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.