The way that The Federal government measures inflation shows that there is little impact from the dramatic increase in M2 money supply. US Personal Consumption Expenditure Core Price Index YoY is only at 1.41%.
Yet a number of commodities and housing have increased along with the massive expansion of Federal Reserve M2 money stock. For example, used cars (Manheim US used vehicle value index) has increased 36% since December 31, 2019. Lumber has increased 149% over the same time period and copper has increased 43%. Home price growth has increased to 12% YoY, up from 6.6% for December 2019.
Yet the US Personal Consumption Expenditure Core Price Index YoY is only 1.41%.
Food? Up 70% since March 2019.
Since April, investors are seeking protection in the form of gold and silver.
Of course, there are droughts and weather events that impact food prices. And growing economies can drive up commodity prices. Then again, markets may simply be drunk on Fed money printing.