US Inflation Stays Above Target for Record-Breaking 66 Months

The US inflation rate has remained above the Federal Reserve's target of 2% for a record-breaking 66 months, according to recent data. This prolonged period of inflation above the central bank's goal is a stark reminder that price pressures remain far from being contained. The Headline CPI rose by 0.4% month over month in August, matching forecasts, while Core CPI, which excludes food and energy, increased by 0.3%, slightly above the consensus estimate.

The chart shared by Charlie Bilello, chief market strategist at Creative Planning, shows that inflation has been on a rollercoaster ride since March 2021, peaking at 9% in June 2022 before falling sharply to 3% in May 2023. It then rose again, reaching 4.2% in May 2026 before easing to 3.5% in June and 3.4% in both July and August.

Bilello has argued that the prolonged period of inflation above the Fed's target is a sign that the central bank has 'lost all credibility' when it comes to fighting inflation.