Core prices continue to rise faster than would be considered comfortable and at the intermediate level they have been surging for the past six months. That is a warning sign.

With those kinds of prices, you can get on a plane and go to the Caribbean. And you don't have to bring linens.

The sharp rise in wages is a two-sided sword.

While we can be somewhat blase about goods [prices], at least for a little while longer, we cannot conclude that retail inflation is anywhere near under control.

Don't sweat it at all. The level of activity remains robust and the details are quite good.

Core prices are at a little higher pace than the Fed is comfortable with, but they're certainly not out of bounds, and the interest rate increases over the past year and a half have kept inflation relatively low.