FYI: While deflation and negative interest rates have crammed the headlines over the past month, today’s CPI print threw some cold water on the idea that US inflation is weak. Core CPI made a new high on a YoY basis, moving up to 2.216%. As the table below shows it’s also up 2.296% on a six month basis and 2.537% on a three month basis. The +0.293% MoM is 3.571% at an annual rate, the strongest print since March of 2006! In short, core CPI is accelerating, and the case could be made it is accelerating sharply.
Regards,
Ted
http://www.bespokepremium.com/think-big-blog/MarketWatch Slant:
http://www.marketwatch.com/story/consumer-inflation-flat-in-january-2016-02-19/print
