The Latest Report Is Disturbing… But Inflation Is Likely Near Its Peak

Higher energy and services prices caused the headline Consumer Price Index (CPI) to reach 8.6% in May, its highest level since 1981! Friday’s disturbing report has sent bond yields to new recovery highs and the S&P 500 into bear market territory. Yet, despite its ongoing persistence, as illustrated in the following pictorial, U.S. inflation is nonetheless likely topping out.