This morning's Bureau of Labor Statistics announcement of a 0.3% March increase in the consumer price index is the rough equivalent of a 3.6% increase at an annual rate:
http://stats.bls.gov/news.release/cpi.nr0.htm
The chart confirms that this inflation number is roughly in line with the low inflation we've experienced over the past 20 years.
Consumer Prices
(Click on chart to enlarge)
(Recessions shaded)
If you take a look at yesterday’s letter and compare the charts' record for producer and consumer prices you will see that they are rough mirror images. That's no surprise because we would expect retail price changes to reflect wholesale price changes.
Either way, inflation remains tame because there is so much slack in our economy. Prices won't surge as long as ample supplies of material and labor are available at current prices.
(To be fully informed visit http://www.beyourowneconomist.com/)
© 2012 Michael B. Lehmann
If you take a look at yesterday’s letter and compare the charts' record for producer and consumer prices you will see that they are rough mirror images. That's no surprise because we would expect retail price changes to reflect wholesale price changes.
Either way, inflation remains tame because there is so much slack in our economy. Prices won't surge as long as ample supplies of material and labor are available at current prices.
(To be fully informed visit http://www.beyourowneconomist.com/)
© 2012 Michael B. Lehmann
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