• Another round of record CPI/PPI inflation readings has not produced price action that can be considered inflationary
• Markets are simply not buying into the inflation hysteria narrative
• On the contrary, they are beginning to price in lower growth!
• The US yield curve continues to flatten as yields on the long end keep falling
• Commodity prices are no longer strengthening across the board, with most off their highs, and lumber weakening considerably as COVID supply disruptions begin to work themselves out
•  The USD continues to trade with a strengthening bias

Can red hot CPI data actually herald stagflation instead of #inflation?

Here’s a look into why:https://t.co/4fOLR1AbAB pic.twitter.com/2qR0DqPlDt

— The Pensive Nugget (@pensivenugget) July 15, 2021