As you know, we've been discussing the pending stagflation since about this time last year. The "Covid Recovery" was never destined to be a full bounce-back and the inflation that would come from QE∞ was a certainty. And now here we are.
There is stagflation written all over today's economic data. And what is "stagflation"? A stagnant, slowly-growing economy combined with high inflation. Is that not what you see below?
- May Producer Prices Final Demand +0.8%, Consensus +0.5%. US May PPI Ex. Food, Energy +0.7%, Consensus +0.5%
- U.S. RETAIL SALES FALL -1.3%...