Summary
- ‘Headline’ inflation rose 0.2% in May, but is up 2.8% over the last 12 months, highest since February 2012.
- Core inflation also increased 0.2%, showing that gasoline prices are not the sole source of inflationary pressure.
- Non-seasonally adjusted inflation was up 0.42% in May. What does this means for holders of TIPS and I Bonds?
Read my full analysis on SeekingAlpha.com
Also, I have updated my Inflation and I Bonds page with the new numbers.
And here are the new July inflation indexes for all TIPS.
Real and nominal yields tend to move together, higher or lower. In the same direction, but not necessarily by the…