As the chart below suggests, it si indeed frustrating for the consumer to deal with inflation. Electricity, gas and food are decreasing our purchasing power at a double digit pace. The US #cpi for the month of May is 8.6%, and we all know by now that the real cost of living is way higher than that. Both #ECB and the #Fed have publicly stated as their main objective to contain the inflation they’ve created with money printing. European government bond yields are raising agressively, particularly in the periphery. And the US 2 year Treasury, the most sensible one to #fedfunds is also climbing up. If central banks tighten aggressively, we may have a #recession or #stagflation and if they don’t, we may have to live with high inflation for a while, depleting our purchasing power. Choose your poison.
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Source: Bloomberg, BLS.
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