Economy

Inflation just jumped the most in years, yet markets are largely ignoring it. Here’s why

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Consumer prices just posted their largest one-month jump in nearly 13 years, a fact that might tempt some to conclude that a white-hot U.S. economy is on the brink of runaway inflation.

But a spike in the June 2021 consumer price index reading may, in fact, be little cause for alarm.

That’s because a significant reason for the overall prices increase is thanks to a dizzying rise in one isolated area of the economy: used car prices.

“The headline CPI numbers have shock value, for sure; however, once you realize that a third of the increase is used car prices, the transitory picture becomes more clear,” wrote Jamie Cox, managing partner at Harris Financial Group. “Inflation is rising, but…



Source cnbc.com

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