Thursday, September 30, 2004

If this doesn't make you start shouting to the media "shut the hell up about inflation and start talking about deflation, you freaking morons!", I don't know what will.
Personal income and spending numbers on Thursday confirmed the underlying benign inflationary picture facing shoppers in the United States. . . .

. . . the PCE price index, one of the Federal Reserve's favorite measures of inflationary pressures, was unchanged in both July and August. On a 12-month basis the PCE price index has risen 2.1 percent. But the core measure, which excludes food and energy, was up just 1.4 percent.
These annual inflation numbers mask recent trends which are starkly disinflationary. Over the last three months, annualized inflation as measured by the PCE index is a mere +0.8%. The core PCE index is up just +0.5% on the same computation. Over the last two months, we are looking at an overall annualized inflation rate of -0.3%. That's outright deflation, folks.

1 Comments:

At 7:14 AM, Blogger Mark said...

deflation!!

Jaguar Car Parts

 

Post a Comment

<< Home