In this clip from today’s edition of The Macro Show, Hedgeye CEO Keith McCullough breaks down today’s 7% CPI print, and why we’re pivoting to decelerating headline inflation from here.
“The two biggest drivers on this inflation number (which is a peak number; the bond market is saying that right now, and so are stocks) are the things we warned you about for a long time – Used Car Prices and Shelter. They’ve both decelerated for two months now. The pending numbers, against tougher base effects, is the point.”
“I have a very high level of conviction that in 3-6 months you’re going to be very happy with making the turn [on inflation], as you would’ve when buying inflation back in June 2020.”