A rise in US prices to the highest level in three decades turned up the heat on the Federal Reserve as inflationary pressures push rate-setters towards winding down huge stimulus.
The US central bank’s preferred measure of inflation – core personal consumption expenditure (PCE) price index – edged up from 3.4pc to 3.5pc year-on-year in June, with forecasters predicting prices will move even higher.
Well, yes, that is a disturbing number and if it continues for more than another few months then welcome back to the roaring 70s.
But journos? Or even Tom Rees. Inflation is not the level of prices. It’s the change in them, the delta.
If inflation is 0.1% then that’s a rise in US prices to the highest level in forever. What has happened is a rise in the rate at which prices change to the highest in three decades.