Is Inflation Finally Back? Maybe, Maybe Not


1. Inflation Jumped Most in 8+ Years in March

2. Will the Current Uptick in Inflation Continue?

3. Dems Push to Make Washington, DC 51st State

4. Why DC Should Not Be a Separate State

Overview – Inflation Jumped More Than Expected in March

Last week the Labor Department released its Consumer Price Index for March, and it was the highest monthly reading in more than eight years. The 12-month CPI rate was also the highest in years as well.

While the latest inflation readings for March were higher than the pre-report consensus, we knew in advance the numbers would be big. Why? Because the inflation rate plunged this time last year due to the COVID pandemic which caused widespread shutdowns and a deep-dive in consumer spending. In data terms, March 2020 fell off the 12-month window this year, and the same will be true when April 2020 falls off next month, and May after that.

So, the current higher level of inflation will be with us for the next few months. The question is, what happens after that? Will inflation recede back to its previous sub-2% level, or is higher inflation here to stay? That’s what we’ll talk about today.

Finally, I’ll close today with a discussion of why Washington, DC should NOT be made our 51st state. There is a way to give those citizens the right to vote without violating the Constitution. You just won’t hear about it in the media. (Note: this discussion makes today’s letter run a little longer than usual.)