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Fear of rising inflation, but this week commodity prices are going down. Why? Let me attempt to make it simple.

Transitory is the buzzword that is spoken regularly. This was months back after J. Powell said that inflation is going to be transitory. It means that inflation will be gradual and the prices that are going up will be temporary.

CPI at 5% is reported recently, which is record high. The only time CPI is higher than 5% was back in Aug 2008. But wait. What happened in Sep 2008? It was the Lehman Brothers crash. Lehman was a symptom rather than the cause. Inflation was high in 2008 but the monetary policy was tight. Lehman suffered earlier from the housing bubble in 2003. Meaning, what really matters is liquidity. So as long as the rates stay low, the economy will have the opportunity to recover and move on.

Back to the question, Inflation is rising but commodity prices are going down? This is because the market believed that commodity prices had peaked. In other words, J. Powell is right or I would say right in keeping the "transitory state". Inflation is due to the pent up demand as all consumers is experiencing FOMO (fear of missing out) to grab everything available during this summer in US. I would too, as herd community is achieved. True? Well, the Consumer Price Index tells me this. 

For now, happy investing! $S&P 500(.SPX)$$DJIA(.DJI)$$NASDAQ(.IXIC)$$Gold - main 2108(GCmain)$