[Mr Ramsbotham]

Since the rate cut on Tuesday, all the indicators of inflation have moved into the red zone.

It takes time for inflationary pressures to result in general price rises; it's not something you're going to see overnight. And that's assuming the money supply has actually expanded. I'm not sure if making the existing supply cheaper will have the same effect.

[frithguild]

In the next three sentences Luskin looks to the indicators in the "red zone":

Gold has moved to new cycle highs. Oil has moved to all-time highs. And the dollar has fallen to all-time lows.

These markets are quite liquid and pretty efficient. Therefore in the aggregate they reflect a pertty informed expectation. Agree that CPI is a trailing metric.