Tuesday, December 16, 2008

Deflating the deflation talk

Here are three different looks at the consumer price inflation data. The blue line is the "headline" or main index; the green line is the CPI less food and energy; and the red line is the Cleveland Fed's measure of the change in the "median" item in the CPI basket, which results from excluding those prices that rise and fall the most. Both the median CPI and the Core CPI continue to rise, which suggests that there has been very little pass-through of falling energy prices to prices as a whole. Most prices, in other words, are still rising; inflation is not dead, and we are a long way from anything that might be termed a true deflation.

5 comments:

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  3. Due to daily reading of your blog I feel I am securing a non-accredited PhD in economics, psychology and investing all rolled into one. Being a single male, and realizing the possibility that your are expertise in other areas, can you comment on the probability of finding an intellectual, health conscious, supportive, non-Amazon, 10+ females available in Southern Orange County; in what density, and what hour is the best time to invest my time and money? A chart would be helpful.

    Thank you,

    CDLIC

    PS. The above request is based on the quality of your choice of a mate as observed in your blog picture.

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  4. What you really need to do is take a trip to Argentina. There are plenty of women there who fit your specifications.

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  5. Then Argentina it is: urban or rural?

    Thanks professor,

    CDLIC

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