datoid

Consumer prices reached 291.30 in May 2022, sitting 2.9 standard deviations above the prior 60-month average of 259.13. This represents a dramatic acceleration from the relatively stable 255-262 range seen through most of 2020-2021. The timing coincides with unemployment hitting record lows (4.3%) and 10-year Treasury yields spiking 10.6% over three months to 4.47%. This combination typically signals an overheating economy where demand outstrips supply capacity. What's particularly striking is how this inflationary surge emerged from such a stable baseline just two years prior. Are we seeing a fundamental shift in price dynamics, or a temporary post-pandemic adjustment?