Inflation is bad, BUT ...

The July consumer inflation data is out, and it's bad. Official CPI at 5.6% year-over-year is the worst since 1990. Food prices were up +.9% in a month. Energy prices up +1.9% in July.
Put this on top of the import inflation in excess of +20% reported a few days ago, and you have a bad situation. Americans' purchasing power hasn't nearly kept up with the goods and services they must buy. Simply put, Americans' standard of living has taken a big hit this year.
UPDATE: YoY wage growth is 3.4%, meaning wage earners have lost -2.2% in purchasing power. Here's the graph:

Notice that this is the first time that hourly earnings have actually decreased in the face of rising inflation.

But there is a silver lining; namely, the July CPI did not reflect the recent dramatic decline in Oil from $147/barrel. If Oil prices continue their decline, or just stabilize at $113-$120/barrel, then almost certainly July inflation is as bad as it gets in this cycle.
UPDATE: Here's a graph of the price of Oil vs. CPI for energy over the last 10 years. Notice that CPI energy always follows a turning point with no more than a one month lag:

The raw energy inflation data for May/June/July for the prior ten years' averages compared with 2008 is:
May +2.1%/+7.0%
June +2.3%/+7.2%
July -0.2%/+1.9%

In August, the average of the last ten years is +1.0%. A big decline in Oil will put a serious dent in the inflation rate.

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import inflation

NDD do you have any more details on that? I missed it.

I think that can be good....if jobs return which surely would strongly lag.

Sure

Here is the BEA official release. Import inflation was +21.6% over the last year.

One Myth Killed, 9 to Go

Since inflation on imports is 21.6% this year the myth that just died is:

If we offshore outsource your jobs it's good, it results in lower prices.

Man, when (if ever) is our government going to get a clue. I might be too late before they do.

Yep

the lesson here is that offshoring jobs doesn't neccesarily reduce prices, but they do take control over the macro economic fundamentals that drive the economy out of the hand of our elected government and turn it over to the multinational corporations.