Hardly surprising given the surge in beef and pork that we have been noting [4], but according to the latest inflation data from the BLS, meat prices spike by almost 3% in April - the most since November 2003 (this is also the 2nd biggest price spike in 34 years!) As we noted previously [5], this soaring food price inflation is not about to stop anytime soon...
And just the monthly change: No hedonic meat adjustments here.
[6]
The Fed 'meme' that low-flation is as dangerous as high-flation (thus providing them an excuse to keep priming the pump) is about to run into a problem as the hedonic manipulation of government-provided inflation data runs into the ugly reality of things that we need actually soaring in price...