Fitting that the weather today is cooler than it has been all week, in that the inflation data that’s been released is also on the temperate side. The Consumer Price Index that was published this morning shows that the cost of goods and services that you and I patronize rose 0.1% last month, and is up 2.6% from this time last year.  That’s down a few ticks from last month’s 2.8% and in line with expectations.  No surprise, but we still welcome the lower number.

Yesterday’s GDP report corroborated the refreshingly calmer inflation environment with a downright cool 1.4% YOY increase, lower also by 0.2%  from the previous +1.6% calculation. And just like the weatherman, Fed Chair Jerome Powell reminded us not to get too comfortable with today’s calmer climate, forecasting that inflation will rise from here and again justifying the FOMC’s current “higher for longer” mantra.