Inflation: New 40 Year Highs

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Headline CPI reached 7.9% in February, a new 40-yr high (but still well below actual inflation which exceeds 15%.)

All categories are all well over the Fed’s 2% annual target with little hope of a pullback any time soon.

Energy prices continue to soar, with gasoline prices near new all-time highs.Even at these levels, however, they continue to diverge from headline inflation on a YoY basis.

As expected, futures have given up much of yesterday’s nonsensical gains.continued for members…

It remains to be seen whether VIX’s “breakdown” will rescue stocks from another down leg or simply delay it.

The rest of the equity picture:

The ECB announced a taper schedule of sorts calling for a gradual reduction of QE, allowing EURUSD to complete a backtest of the white channel bottom.

USDJPY is on remote control, continuing to edge higher. GC and SI have both pulled back and backtested, so are at a critical juncture re their upside targets. BTC has given up almost all of yesterday’s bounce.