On April 10th, the Bureau of Labor Statistics reported figures for the March Consumer Price Index (“CPI”). CPI purports to represent changes in the overall price level of the American economy – an obscenely vague abstraction in a country of 350 million people. Let’s pretend for a moment that it does that.In March, overall CPI grew at 3.5 percent from a year ago and so-called “core CPI,” which excludes food and energy items, increased by 3.8 percent from a year ago. Across the board, price inflation was higher than expected. Of more relevance, both measures increased by 0.4 percent from last month, representing a 4.9 percent annualized rate of price inflation.In response to the report, bond yields rose, stocks dropped, and analysts in the lobotomized financial press reacted in muted shock,
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