Inflation? What inflation? Let's look at facts.

Discussion in 'Economics' started by Kassz007, Nov 17, 2010.

  1. October CPI: +0.2%
    October Core CPI: Unchanged (0.0%)

    "The core has its smallest over-the-year gain since this index was first reported, in 1957."

    "Food posted +0.1% as cereals, fruits, and nonalcoholic beverages fell but dairy and meats surged."

    "Gasoline was up for a fourth month in a row and accounted for almost 90% of the overall gain in CPI."

    "There is nothing to worry about here for inflation, and the modest CPI data fit with the outlook that deflation or disinflation is more of a concern."

    October PPI: +0.4%
    October Core PPI: -0.6%

    When we look at the most current statistics on inflation, it appears that there is none to very little. For some reason, people have been worried about inflation for over a year now. It still has not arrived.

    QE concerns unwarranted?
  2. You should go learn how CPI & PPI are calculated and have been adjusted over time to hide real inflation.
  3. Great Post with facts guys!

    To many on ET have their heads up their arse....
  4. Yes, but the price of raw materials is only one factor in the final price in food paid by consumers:

    - raw materials: up
    - transportation: recently up, but down from a couple of years ago
    - processing (labor intensive): down

    Just because bulk sugar goes up doesn't mean people are going to balk at the cash register.

    Much of the supposed "inflation" is asset-bubble related, not in the shopping-basket. As the Fed starts to drain liquidity later they will pop.

    It is a serious problem for the poor in developing countries, though. :(
  5. All one has to do is check with real consumers in the real world about the cost of living. Ask any retiree who has not received a cost of living increase for the past several years and will not get one this year if the cost of living has increased. The CPI has been manipulated to report what the government wishes to convey.

    I remember what one of my college accounting professors said once: " figures don't lie but liars can figure".
  6. Right. I'll get on that...

  7. So cotton prices have increased. Great. On a related note:

    "...apparel printed -0.3% (men's, women's, and infants' clothing fell but shoes gained)..."

    It doesn't matter how the number is calculated as long as it is comparable. The question is, is October's CPI numbers comparable to previous CPI numbers?
  8. #10     Nov 17, 2010