According to Mihir (@RhythmicAnalyst), the analysis of the last 60 years of US inflation using Core PCE data highlights two significant periods: the 1970s, marked as the worst inflationary period, and the current trend. The red rectangle in Mihir's analysis signifies the 1970s, while the blue rectangle represents the present inflation trend. This visualization aids traders in understanding historical and current inflationary pressures, impacting interest rate expectations and market sentiment. Source: Mihir (@RhythmicAnalyst).

According to Mihir (@RhythmicAnalyst), the Michigan Inflation Expectation survey has reported a significant rise in inflation expectations, with the figure reaching 4.3% compared to 3.3% last month. This increase suggests a potential return to inflation levels reminiscent of the 1970s, which could influence trading strategies, particularly in inflation-sensitive markets such as commodities and bonds.