Goods inflation is rising because of tariffs, and services inflation is no longer declining, see the first chart below.
At the same time, 72% of the CPI components are growing faster than the Fed’s 2% inflation target, see the second chart below.
The bottom line is that inflation is still not under control, and this increases the risk of a steeper curve, a higher term premium, and a rise in TIPS and breakevens, see the third chart below.
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