As you know, there have been enough stock bubbles popped in the last few weeks to make us think we've been at a champagne brunch. Clearly another bubble that is being popped as we speak is the bubble illusion that inflation is under control. For those who may not have noticed, this was the worst week for the 30 year Treasury in 10 months. Feeling hot, hot hot.
Benefits largely make up the rest.
Today's overall ECI index increase was the largest in 11 years. It was largely driven higher than expected by the benefits portion of the index. You know, minor little thing like health care cost increases. This is now two quarters in a row of strong ECI readings. Quite unfortunately, the following graphs are not completely up to date, but clearly show upward directional change from the bottom.