• Headline inflation of over 5% continues to persist above the Fed's target of 2% with the rate of acceleration slowing as supply issues resolve.

• Transportation and commodities are the main driver of increased inflation and should ease as supply chain issues abate.

• Compensation is growing at rates slightly below the prior cycle lows with all regions showing an uptick in wages despite slowing wages in the Government sector.

• The crude oil impact on increasing commodity prices is significant and industrial metals continue to climb as supply chain issues persist.

• House price growth is broad based and continues at a record pace as increased demand from inexpensive financing meets constrained supply.

• The baseline inflation forecast suggests a peak of inflation arriving this quarter and a steady decline to just over 3% during next year.

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