Combining Three Distinct Sources Of Inflation, by Daniel Amerman
The rolling average 3-month rate of inflation in the United States has now reached 10.7%. This is an important number as it represents the first time that we have a full three months of inflation data – March, April, and May – that include the economic impact of the Ukraine War and the related sanctions. What is being lost in the political and economic talking points is that we have three underlying sources of inflation. As we will graphically develop in this analysis, these three sources can be broken apart, and the stepping up of inflation as the second and …