Companies and Brands
CPI Puts Balance Between Inflation & Deflation Cases
Published:
Last Updated:
The Labor Department has just released its data on retail inflation measured by the Consumer Price Index. This was the December 2011 level and the figure came to +0.1% on the headline CPI and also +0.1% on the core-CPI. Both figures were rounded down. Bloomberg had rates expected at +0.1% on the headline CPI and also +0.1% on the core CPI which cuts out the more volatile food and energy components.
Today’s data showed that the energy component was down by -1.3% ad the food component was up by about +0.2% for the month. Inflation is not alive and well, and the news does little to stoke the fuel of the deflation camp as well.
Yesterday’s data on wholesale inflation measured by the Producer Price Index should have telegraphed that today’s news was not going to hold any major surprises. As suppliers generally have to endure months of higher prices before passing price hikes on to the retail level, this is setting up the tone for low inflation expectations in the weeks and the coming few months ahead.
JON C. OGG
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
