Inflation at the consumer level was nowhere to be seen in October.
The CPI, Consumer Price Index, edged upward by 0.2% for October. In September the CPI climbed 0.1%. Economists had been projecting a 0.3% increase for October.
Core inflation, that’s inflation discounting changes in the prices of food and fuel, came in at 0% for October. That lowered annual core inflation October 2009 to October 2010 to 0.6%.
The October figures will feed into the Federal Reserve’s fears of deflation. The Fed’s target annual inflation range is 2% to 2.5%. The actual headline CPI is up 1.2% in the last year. The 0.6% annual increase in the core inflation rate is the lowest annual increase since the government began tracking core CPI in 1957.
There’s now a good chance that the annual core inflation rate will fall even closer to 0% over the next few months. Core inflation was 0% in September and you have to go back to June to find core inflation above 0.1%.
The Federal Reserve’s program of quantitative easing is with us until the Federal Reserve sees some signs that inflation isn’t headed to 0% but has actually turned the corner and is starting to pick up. On the October data that turning point isn’t imminent.
Without food and fuel in the CPI its difficult to understand considering very reliable. I see pfood packaged in smaller quantities (the price remains the same), beef prices increases noticeably, and, of course, gasoline approaching $3 a gallon. Maybe in other sectors the increases can’t be passed on, but relying on the governments CPI, in ill-advised. I agree with GS above.
Im not gona buy anything this xmas that is not Amrican made
Now all we have to do is stop eating and driving and we will do well with our lower salaries.
Anyone have a thought if mortgage rates are going back down anytime soon?
So keep the press going full speed.. we need to start making all those horses fallow the carrot in the stick again