Thursday, April 15, 2010
Inflation update - - The slow slide continues
Core CPI touched the 1% yoy level in 2004. Considering the direction of core CPI we may penetrate that lower level soon(tm)
Housing CPI is still deflating and I don't see that changing anytime soon.
While headline CPI is still higher than core I don't foresee it rising too much more without putting a serious dent in the economy. $150 oil helped knock the economy over last time and if oil prices continue to rise it will start to crimp the economy again.