If we look at the US Personal Consumption Expenditures Core Price Index YoY, “inflation” is a modest 1.41%. However, the largest item for households in typically housing. And housing is rising at over 10% YoY.
Then we have S&P 500 Reported Earnings Share Weighted Avg Gain or Loss YoY growing at 6.1%. That represents >4x “inflation”.
The team of Powell and Yellen are “The Inflation Illusionists.” (Bernanke on the left)