Food, Energy Inflation Soars Amid Virus, Jobs Uncertainties

INDICATOR: June Consumer Prices, Real Earnings and Small Business Optimism

KEY DATA: CPI: +0.6%; Ex-Food and Energy: +0.2%; Food: +0.6%; Energy: +5.1%/ Real Earnings: -1.7%; Over-Year: +4.3%/ NFIB: +6.2 points

IN A NUTSHELL: “Inflation is not an issue unless you eat, drive and/or cool your house (yes, that is an oldie but goodie, but it still works).”

WHAT IT MEANS: Almost 15 years ago, I used the comment above to criticize the Fed for saying that inflation was not an issue if you exclude food and energy. That caught the...