‘Big Short’ investor Michael Burry warned inflation would spike again. Prices just jumped.

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Michael Burry, the investor of “The Big Short” fame.Jim Spellman/Getty ImagesMichael Burry predicted a second inflation surge, and price growth reaccelerated in March.The “Big Short” investor first warned of inflation in April 2020, over two years before it peaked.Burry expected a recession, rate cuts, and stimulus spending to reignite inflation.Michael Burry of “The Big Short” fame warned inflation would make a comeback — and it’s on the rise again.Headline price growth accelerated to 3.5% in March, up from 3.2% in February and 3.1% in January. While it’s slowed significantly from its peak two years ago, it remains well above the Federal Reserve’s 2% target.Burry first flagged the risk of inflation in April 2020, when prices were almost flatlining. Inflation soared to a 40-year high of over 9% by June 2022.That month, the Scion Asset Management chief correctly predicted the inflation rate would slow over the next six months:A Consumer Price Index chartUS Bureau of Labor Statistics, annotation by Business InsiderIn January 2023, when inflation was over 6%, Burry again accurately forecasted that it would decline by the year’s end — but cautioned it would surge again.”Inflation peaked. But it is not the last peak of this cycle,” Burry said in a X post at the time. “We are likely to see CPI lower, possibly negative in 2H 2023, and the US in recession by any definition.””Fed will cut and government will stimulate,” he continued. “And we will have another inflation spike. It’s not hard.”Burry’s recession call was off the mark as the US economy grew about 2.5% last year. Nor has the Fed started cutting interest rates yet, as it’s navigating stubborn inflation, a tight labor market, and solid growth. And there haven’t been any emergency stimulus packages so far.Yet inflation has ticked up. Potential reasons include resilient consumer spending, robust employment growth, multiple overseas conflicts, and government pr …

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