Why Monetary Inflation Hedges Like Gold and Bitcoin Are Vital

High Street Inflation may Be Cooling, But Monetary Inflation Is Not

Bitcoin’s price may be churning, but it remains close to its all-time high and gold bullion looks to be breaking still higher from its peak. This despite seemingly benign US consumer price numbers in the latest August print. Evidence our favored chart below, which calculates the ‘pass-thru’ of cost and wage shocks to US high street prices. This statistic likely measures ‘inflation expectations’. The data show a sharp drop from the 31.5 month peak. Latest data show that shocks now dissipate quickly through the price structure, with less echo-effect and amplification. In short, underlying high street inflation has fallen sharply.