In this morning’s edition of The Macro Show, Macro analyst Christian Drake analyzes the July CPI print, highlighting how consumers are expecting the highest inflation levels in recent history over a longer [read: non-transitory] duration.
“Consumers are not buying into the transitory narrative. Consumer inflation expectations (for 3-years out) are at another all-time high,” explains Drake, as he breaks down the factors that maintain stickier (for longer) inflation going forward.
"Shelter CPI accelerated again. We're heading back to the previous average, and likely significantly higher. Remember, shelter is ~33% of CPI. It's going to support the headline prints for some time."
