Greetings,
United States: Economists were surprised by the intensity of the pandemic recovery price gains. The Citi Inflation Surprise Index hit a record high.
![The Daily Shot Brief – June 2nd, 2021](https://thedailyshot.com/wp-content/uploads/US-Citi-Infl-Surp2106020438.png)
A majority of inflation gains in the April CPI report came from flexible prices, not sticky prices, which tend to move more slowly.
![The Daily Shot Brief – June 2nd, 2021](https://thedailyshot.com/wp-content/uploads/US-CPI-sticky2106020438.png)
Canada: Unlike the US, Canada did not experience a spike in mortgage delinquencies during the pandemic.
![The Daily Shot Brief – June 2nd, 2021](https://thedailyshot.com/wp-content/uploads/CA-Mortg-Delinq2106020438.png)
Eurozone: Energy drove most of the year-over-year increases in the headline CPI.
![The Daily Shot Brief – June 2nd, 2021](https://thedailyshot.com/wp-content/uploads/EZ-CPI-EN2106020438.png)
Equities: Many SPACs will be forced to buy overpriced companies before hitting their deadlines (to return cash to investors).
![The Daily Shot Brief – June 2nd, 2021](https://thedailyshot.com/wp-content/uploads/EQ-SPAC-Merger-Deadlines2106020438.png)
Rates: The bond market still doesn’t expect high inflation to persist for very long. The Fed’s QE also contributes to lower yields.
![The Daily Shot Brief – June 2nd, 2021](https://thedailyshot.com/wp-content/uploads/RA-10y-v-Core-CPI2106020438.png)
Food for Thought: Types of economics papers:
![The Daily Shot Brief – June 2nd, 2021](https://thedailyshot.com/wp-content/uploads/VTF-Econ-Papers-ST2106020438.png)
Edited by Richard Holmes
Contact the Daily Shot Editor: Editor@DailyShotLetter.com