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. . . .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.
. . . 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.