Not all about eggs

US inflation ticked up slightly, with headline rising from 2.9% to 3.0% and core from 3.1% to 3.3%. However, the details are less concerning—energy inflation turned positive, and core goods declined at a slower pace, while services inflation, the main driver, eased slightly.

The biggest headline? Egg prices surged 13.8% due to a bird flu outbreak, echoing 2015. While this matters for households, it’s not a broader inflation signal. Food inflation overall remains stable, and other notable increases—juices (+5.3%) and coffee (+4.4%)—stem from supply issues in Brazil and Vietnam.

At ECP, one of our current investment themes is that inflation may come back with a vengeance, but we don’t think we’re there yet. Monetary policy remains in a delicate balance, and investors should stay vigilant.