Inflation, shminflation part 3
The release of the May personal income and outlays report allows me to update the consumer inflation numbers I talked about two weeks ago.
After release of the May CPI report, I said
A consumer inflation level of 2.8% is quite low in the grand scheme of things and is now at its lowest point since September 2004. Energy prices have obviously been through the roof, with the compound annual rate for the last three months standing at 28.7%. That being said, the core CPI is a mere 2.2% and has been more or less steady for the last seven months.Regarding the PCE measure, I noted that overall consumer inflation was running at 2.7% while the core index was just 1.6%. The April figures have been revised downwards to 2.6% and 1.5% respectively, and the preliminary May figures are a mere 2.2% and 1.6%. We're still not at the deflation scare levels of 2003 when core PCE inflation was all the way down to 0.8%, but there is no doubting that these levels are exceedingly tame.