Inflation fears? Not in November
The November 2010 CPI has been released. The verdict? Nothing doing on the inflation front.
In this 2009 photo, shoppers choose groceries at a Wal-Mart in Deptford, N.J. The consumer price index remained flat, except for food and fuel. Inflationists point to the central importance of food and fuel, while deflationists highlight the flat prices of everything else.
Matt Rourke / AP / File
Consumer prices for virtually everything remain uninflated...ex Food and Energy of course.
MarketBeat's Dave Kansas sees nothing for the Inflationistas to latch onto in this morning's reading:
In November, the CPI rose a scant 0.1%, giving consumer prices an anemic 1.1% rise during the last 12 months. The so-called core, which excludes food and energy, also rose 0.1%, for an annual rate of 0.8%. Both readings are well below the Federal Reserve’s target rate of 1.7% to 2%.
Reports like these keep the green light on for the "Students of the Depression" running monetary policy.
For discussion's sake, Peter Boockvar at The Big Picture has a slightly more alarmed take on the report...
The absolute CPI price index (aka cost of living) is now at the 2nd highest reading on record at 218.88 seasonally adjusted, just a hair off the all time high of 219.10. The core rate, which the Fed loves to focus on, is at an all time record high.
Sources:
November CPI Offers Little to Inflationmongers (MarketBeat)
Benign Inflation? Not As I See It (TBP)
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