With the Fed’s preferred inflation gauge currently running at 1.6% year-over-year, well below the Fed’s 2% long-run target, real personal income growth flat, real household spending declining by 0.1% in July, and inflation in Europe at a staggeringly low 0.3% year-over-year and falling, don’t waste your energy getting worked–up about inflation. Moreover, GDP growth in Q3 will be 2.75%, too low to generate meaningfully more inflationary pressures.