I was just looking at the core CPI over the course of this year and apparently it stayed positive all year on a yoy basis. Yet the media kept reporting earlier this year we had deflation . Of course the headline plunged with commodity prices but I find questionable that the Fed and economists in general focus on the headline number when it falls to say there is deflation but ignore that very same piece of statistics when it goes up ! The deflation this year was just a reversion to the mean after the insane and engineered rise in commodities in 06-07. So deflation as seen in the headline figure was a good thing. What the Fed was really worried about thus is deflation in assets such as housing and that's a completely different thing, and again there is a double standard here since on the way up all is well, but when it comes back down they call it a catastrophe or deflation. Is the talk of deflation then just a fraud ?