At this point, there is no significant evidence that inflation has peaked. We received a false glimmer of hope in April when the CPI dropped 0.2% lower than in March. This was the first time the CPI moderated in eight months. However, it jumped 0.3% in May up to a 40-year high of 8.6%.
James Knightley, chief economist at ING feels that two consecutive moderations in the annual rate may be needed before we’ve actually passed the inflation peak.