Alex Dudov
⬤U.S. inflation is showing renewed upward momentum as the Truflation US CPI Inflation Index rises to 1.65%, a sharp acceleration from recent weeks. While inflation remains below the Federal Reserve's 2% target, the pace of change has picked up. The chart shows inflation rebounding from lows near 0.7%, signaling a clear shift in short-term direction despite still-subdued headline levels.
⬤The data points to a decisive reversal from the prior cooling trend. Earlier readings had inflation falling as low as 0.72% before its recent climb began. At 1.65%, the index has nearly doubled in a short window, reinforcing the view that momentum is now the key variable to watch. This dynamic was also captured in US Inflation Drops to 0.72% According to TruFlation Data, where real-time indicators sharply diverged from traditional CPI metrics.
⬤The gap between real-time and official inflation data remains a key macro theme. Bureau of Labor Statistics CPI sits around 2.40%, while alternative sources show faster directional swings. Similar divergence was tracked in Real-Time US PCE Inflation Falls to 1.54%, which highlighted how quickly conditions shift ahead of official releases.
⬤The recent move higher underscores why trajectory matters more than static readings. Even below the Fed's threshold, a building inflation trend can shift rate expectations and risk sentiment. As seen in Bitcoin Under Pressure as U.S. Inflation Rises to 2.9%, higher inflation readings have historically weighed on asset prices and policy outlook. With real-time data now climbing, this trend is increasingly difficult to ignore.
Alex Dudov
