Inflation is hotter than expected, but looks 'transitory' and likely won’t affect Fed policy yet

Consumer prices rose sharply in May, with the CPI jumping 5%, more than economists expected.

Economists said there are signs that rising prices could be temporary since they are centered in areas impacted by the pandemic. The consumer price index rose 5% in May on a year-over-year basis, the highest since 2008, when oil prices were skyrocketing. Excluding food and energy, core CPI rose 3.8% year-over-year, the highest pace since 1992. A third of the increase was attribute to a sharp 7.3% increase in used car and truck prices.

The Federal Reserve meets June 15 and 16. There was some market speculation that if inflation looked very hot, the central bank might move up the time frame on when it would begin to discuss cutting back its bond purchases. Many economists have been expecting the Fed to first talk about tapering bond buying at itsZoom In Icon"There's evidence it's transitory because a lot of the surge in prices are for things that are just normalizing...

Are you f. kidding CNBC? Tell people the truth! Inflation is not due to demand and supply issues! IT'S THE PRINTING OF MONEY 💰 Dumb polititans CLOSED the economy & began bailing out banks & large corporations. IT'S PERMANENT AND A CRASH IS COMING! STOP GIVING AWAY MONEY!

Absolutely in denial

It's affecting everyone but rich politicians. Get a grip

I will never own another car. Even a used one. Cannot afford it. 🤷🏽‍♀️ Same $$$ less I can buy.

So, is the inequality the Fed is causing transitory too?

It's OK guys, CNBC says its transitory... for the forth time in a row.

Biden’s America

(buy bitcoin)

price = money supply * velocity —————————— real GDP supply up like 1.3x velocity about to be up 1.5x from mid-quarantine real GDP flatline How is this supposed to be 'transitory' again?

What kinda garbage take on the economy is this

To the Fed inflation is measured month over month or quarter to quarter so if an item goes up 50% in a quarter there is inflation. Then if the price stays at the new high the next reading shows no inflation. That is their def of transitory....means not going up daily. Total B.S.

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