The August CPI data out of the US and oil prices climbing back above 90$/barrel are timely reminders that inflation might not continue to fall effortlessly towards 2%. With US headline inflation falling from 9% last June to below 3% a year later, it is understandable that the market pricing is pricing 2% inflation in less than a year. The increase in energy and food prices following the russian invasion of Ukraine and the pandemic-induced surge in goods prices were the main drivers behind the 2022 inflation spike. Since then, oil and natural gas has found new ways to reach the market, bringing energy prices lower. ... (full story)