7% inflation is YoY. If you look at the last 3 months annualized, it is under 5%. This is why 5% or less inflation YoY in 1st quarter is baked-in since the comps from 2022 are high. Also, working and lower middle class are seeing the highest wage increases. Bank CD’s last month were 3.5%. I suspect they will be >5% next Spring.
Last edited: Dec 14, 2022