In Wednesday’s edition of The Macro Show, Hedgeye CEO Keith McCullough and Director of Research Daryl Jones discuss Thursday’s CPI print, and the secular trends that could push CPI past Old Wall estimates. In-line with their thoughts, US May CPI propelled to 5% year-over-year, its fastest pace since August 2008.
"People are anchoring on May CPI because we were comping from a trough in 2020 to a peak in June. But look at home prices, commodities, supply constraints, jobs hard-to-fill ATH... all this is going to cause price pressure," explains Jones, as he hits on the underlying inflationary factors.
“Chinese PPI is actually one of the best predictors for U.S. CPI; there's a lagging but tight correlation there.”