Headline CPI came in at 6.5% year-over-year and down -0.1% for the month of December. Core CPI was up 5.7% year-over-year and up 0.3% for December, up from 0.2% in November.

• Readers know how we feel about price inflation – it is higher than what the government reports. Take “eggs” for example which we recently wrote about. Egg prices at retail are up significantly more than the laughable 11.1% year-over-year figure that the government reports via its CPI release. Further, to assign “eggs” a CPI index weighting of .147% while assigning “cakes, cupcakes and cookies” a .187% weighting does not reflect economic reality. Weighting is a tool by which the Federal Government manipulates economic reality to something more favorable for public consumption.

• Elevated prices will lead to diminished savings in concert with elevated job losses as the Fed continues to tighten. There will be no soft landing and we will not get to 2% CPI any time soon.

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