March 4, 2018

IT'S A DEFLATIONARY EPOCH:

U.S. Inflation May Be Less Than Meets the Eye (Matthew Boesler, 3/03/18, Bloomberg)

So-called procyclical inflation -- a measure containing the prices of goods and services that typically rise faster when employment is increasing -- decelerated last month to the lowest level on an annual basis since April 2014, according to data compiled by Bloomberg News from Commerce Department figures published Thursday. [...]

The so-called core inflation rate they watch closely, which strips out volatile food and energy prices, was just 1.5 percent in January, and the cell-phone pricing change that hit the index in March 2017 is only holding it down by about a tenth of a percentage point.

The slowdown in procyclical inflation in January stemmed from several components, including food services and accommodations, recreation services, prescription drugs and nonprofit spending.

Rental inflation, one of the biggest drivers of core and procyclical inflation, was little changed.

Posted by at March 4, 2018 6:54 AM

  

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