Our Monthly Inflation Nowcast nailed Wednesday’s CPI report, which slowed to 2.5% for August, consistent with our #Quad4 call.
In this clip from The Macro Show, Hedgeye CEO Keith McCullough explains his expectations for future stagflation and inflation’s re-acceleration in the coming quarters.
Shelter inflation remained stubbornly high in August, contradicting the broader deflation narrative. A headline from Yahoo Finance today hilariously reads: “CPI Shelter Index Showed ‘Mysterious’ Rise.
“Shelter is a third of the CPI, and the base effects of shelter are no longer going to be the friends of the doves in the fourth quarter and into the first,” said McCullough.
Mainstream Wall Street media, including outlets like CNBC, continue to avoid reporting anything that challenges the Fed’s narrative that they are succeeding in their war on inflation.
“Every American that has a budget knows that the cumulative inflation for the last 3 years is high and rising. There’s no such thing as inflation deflating right now.”
“That’s why people don’t trust Wall Street, because they’re lying.”
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