The inflation data released yesterday and today were bad and worse. The CPI increased 0.5% in May, while the core rose 0.2%. That brought their year-over-year inflation rates to 4.2% and 2.9%, respectively, well above the Fed’s 2.0% target. The Producer Price Index (PPI) showed that much more inflation is in the pipeline. The overall index rose 1.1%, bringing its increase over the last twelve months to 6.5%. The core PPI rose 0.8%. It is now up 5.1% over the last year.