There's been no price decreases on food where I am for years. Only price increases. Your article doesn't apply here. How's your health care costs? Decreasing too?
Of course the article applies. Stores are running sales, rebates and coupon programs contributing to lower overall grocery checks. There are price wars going on that benefit the consumer (for the time being). Obviously this won't last forever but it is what it is. Health care has a weight of 6% in the CPI. Average health care costs could go up 20% annually and CPI would barely budge. CPI components: http://www.nytimes.com/interactive/2008/05/03/business/20080403_SPENDING_GRAPHIC.html
Very good IMO, minus the Owners Equivalent Rent non-sense. Without OER, CPI would be printing like -5% annualized right now thanks to dropping home prices.
Real GDP was probably down over those years but using the govts very fudged inflation numbers the ygot the numbers they wanted. By the way CPI is a very lagging indicator of inflation, it is the last thing to pop when inflation hits. Look at monetary base, gold, etc, and you'll see what is happening.
he has said in many interviews that he covered all his shorts early this year and would not be putting any more on for a while.