JP Morgan economist Michael Feroli is predicting that headline CPI will soon accelerate to 5.1% year-over-year. But don’t worry: This won’t affect you unless you eat or drive.
The jump will be largely attributed to a 6.5% per month spike in wholesale gasoline prices during the summer. Food prices will grow at a more modest 0.4% per month and “core” inflation will be restricted to a 0.17% clip. Altogether, the headline CPI figure would grow to above 5% under this scenario, its highest level since 1991.