As we enter the summer not only the weather is heating up, but also inflation as measured by CPI. Last week, major global indices extended the record and government bond yields collapsed to their three-month low. The consumer price index (CPI) rose 5% from a year ago with the core
index, i.e. excluding food and energy, rising 3.8%, the largest 12-month increase since 1992. However, market participants took a 180-degree turn, and instead of running away from inflation they believe that inflation is transitory and will soon subside….
