Inflation: the Cat is Out of the Bag

Inflation fear is something we've been following closely in 2021. In the wake of the June CPI report, which showed a second consecutive month of record price increases, Consumer Mentions expressing uncertainty and concern about inflation have continued to trend toward new highs, up +197% YoY (90d MA).

Although lower prices during the lockdowns last year contributed to the record YoY increases seen in May/June, there's no denying that Americans are keenly aware of the phenomenon... And, the ATH levels of fear serves as proof. A favorable July CPI print could go a long way to assuage concerns in the near-term, but the fact remains that inflation (and the related fear) has been favorable for US equity prices. The July CPI report is scheduled to release next Wednesday, August 11th.