Both the headline number and “core” inflation–which excludes food and energy prices–rose substantially. Economists surveyed by the Wall Street Journal think it won’t last. Of course, they were also surprised by the current figures.
Update Reader Peter Lentz emails:
May I humbly suggest that you post an update to your Instapundit post linking to the WSJ economists’ take on cpi prospects by directing readers to the comments. I do not believe I have ever seen such universal consistency of opinion in a set of comments: the 1) contempt for Wall Street economists’ forecasting acumen; 2) doubt that Fed policy can deliver what Wall Street expects; and most importantly, 3) the near consensus of the commentators to the WSJ Economics Blog (presumably populated by cohort of “dilettante or better” economic observers) that inflationary pressure will be the dominant factor determining the course of the economy. If expectations influence inflation, expectations seem to be on a definite incline.