Wednesday, September 15, 2021

Inflation Drama

The following chart shows the natural log of the median CPI. When using natural logs, constant exponential growth is seen as a straight line. I have added a trend channel in red.

 


Once the inflationary extremes are stripped out, it's just more of the same. When combined with exponentially decaying long-term interest rates, it is of little consolation to safety-seeking long-term savers though.

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