The inflation report for the month of February was hotter than expected at 3.2% YoY. A more granular analysis, like the one shown below, shows that inflation composition has changed; during 2021 and 2022, a big percentage of price changes came from goods, Energy and Food.
Excess savings: "The rundown is more likely to be a gentle slope than a cliff edge...As long as the labor market remains tight, we believe the rundown of household savings is consistent with balance sheet normalization and a slowdown, not a collapse."
