According to The Kobeissi Letter, current 6-month annualized CPI inflation trends toward 4%, while the 3-month annualized CPI approaches 5%. The headline CPI inflation is at 3.0%, which appears optimistic given the Federal Reserve's 2% target. This positions the Fed 100 basis points above their target, indicating potential pressure on interest rate adjustments. Gold markets have reacted to these inflationary trends for months, suggesting that inflation hedging strategies might be prudent for traders.