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July 7, 2021

Some of the large price increases that garnered media attention during the pandemic are unlikely to remain at an elevated level as the economy normalizes. They are a small part of the overall CPI calculation, and the major components are likely to continue increasing in the second half of 2021.

One of the major debates in the economic arena is whether current inflation levels are sustainable.  We thought it would be helpful to take a look at the component weights in the Consumer Price Index (CPI) calculation and the trends of the major inputs. The largest single category of the CPI calculation is shelter and...
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