Incoming Inflation

A year ago today, the WHO declared Sars-CoV-2 a global pandemic. Lockdowns commenced and prices of many goods and services collapsed, airline tickets, clothes, oil, as examples, and M-o-M inflation readings went negative in March, April, and May. Comparing those pandemic-induced prices to what they are now will soon show year-over-year inflation rates exceeding 3%/year. Ignore it! These Base Effects are one-off and indicate nothing about current inflationary pressures.