Gold moved higher after headline US CPI printed at an ‘eye watering’ 7% year-on-year to the end of December. The highest level since June 1982, when Rocky III was breaking box office records. If there was ever any doubt, the Fed now has a fight on its hands. The terms ‘base effect’ and ‘transitory’ will be studied by economic students for generations. In the present, the reality of uncomfortably high inflation is front and center. Aside from price instability, the issue with high inflation is that it erodes the value of money over time. This is good news if you are a borrower, but bad news if you are a lender. The ... (full story)