US inflation returns to a gallop, at least for a month

For inflation to be galloping it typically needs to be rising at double or even triple digit rates per year.

To be clear we are not there yet, but March’s 1.2%mom rise (nsa), easily annualises to something as troubling.

As expected much of this is energy prices and as we argued at the beginning of the month (here), March 2022 is proving a good benchmark.

Twenty-four days of data into March 2026, if anything, inflation looks a little worse. We also note seasonally strong increase in the electronics and recreation sector and again above average price rises in Apparel.

In short, the immediate inflation outlook looks quite poor indeed.