Indestructible Inflation

The Fed’s favorite inflation measure, the personal consumption expenditure index, increased 6.8% Y-o-Y in June, up from 6.3% Y-o-Y in May, and its highest reading since 1/82! Moreover, the employment-cost index, a measure of wages and benefits for civilian workers, grew by 1.3% in 22Q2, down slightly from 1.4% in 22Q1, the fastest quarterly rate since recordkeeping began in 2001. Worse, the Y-o-Y rise was 5.1%, a new 12-month record.