Wednesday, November 16, 2011

Inflation in the US?

Well not according to this morning CPI numbers that came in at -0.1%, while core CPI was at +0.1% -- which gives an annualized rate of inflation of...drum roll... 1.2%.  So CPI was slightly below expectation and core CPI was exactly on expectation.  The fact that the Feds yesterday announced that its rates will stay at 0.25% until 2013 made these number a certainty.  BTW it kind of blows a massive hole in the Republican's world view that the Fed printing will lead to hyperinflation.  Of course eventually they could be right... like in 3 or 5 years!

Ok so Canadian inflation is still much too high at 3.2%, but everyone is working on the assumption that rates will fall (they come out on Friday) to 2.5% to 2.8% [take your pick]


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