Category: Inflation
The analysis published under this category are as follows.
Wednesday, March 23, 2016
Fed's Bullard: We Are Overshooting on Inflation / Economics / Inflation
By: Bloomberg
Federal Reserve Bank of St. Louis President James Bullard spoke with Michael McKee and Tom Keene on Bloomberg TV and Bloomberg Radio this morning. He discussed Fed policy, the U.S. economy global inflation, and moving toward a more normal nominal interest rate structure.
Bullard said policy makers should consider raising interest rates at their next meeting: "You get another strong jobs report, it looks like labor markets are improving, you could probably make a case for moving in April."
Tuesday, March 15, 2016
The Fed Just Confirmed Inflation is Here / Economics / Inflation
By: Graham_Summers
As we warned last week, the inflation genie is out of the bottle…
We now have confirmation that the Fed is aware of this…
Two key Federal Reserve officials said Monday they expect inflation to get closer to the central bank’s target…
Their comments came after data late last month that showed core inflation rose 1.7 percent in the 12 months ended in January.
Source: CNBC
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Monday, March 14, 2016
U.S. Inflation Comeback: Did Inflation Ever Go Away? / Economics / Inflation
By: Mike_Shedlock
This is a guest post by Joseph Y. Calhoun at Alhambra Investment Partners. His post starts off with this quote by Stanley Fischer, Fed Vice-Chair in a speech before the National Association for Business Economics.
Says Fischer "We may well at present be seeing the first stirrings of an increase in the inflation rate -- something that we would like to happen."
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Thursday, February 25, 2016
Central Bank Inflation Targets: Be Careful What You Wish For / Economics / Inflation
By: Michael_Pento
Did you ever ask yourself what this central bank obsession with inflation is really all about? After all, it is highly ironic that these erstwhile stewards of price stability have now perversely morphed into the frantic pursuit of currency destruction. This is because the current doctrine adopted by global central bankers is that growth comes from inflation; and without inflation there can be no growth. Therefore, as their new dogma dictates, inflation must be achieved at any cost.
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Monday, February 22, 2016
U.S. Inflation: Prepare for 4% or more! / Economics / Inflation
By: Ned_W_Schmidt
Last we visited on the subject of U.S. inflation (November, 2015) we wrote,
"Using those simplistic numbers suggests that U.S. inflation as measured by the [headline] CPI could rise to an annual rate of about 4% ..."
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Tuesday, February 16, 2016
Inflation Doesn't Come From Seasonally Adjusted Employment / Economics / Inflation
By: Michael_Pento
According to the Bureau of Labor Statistics (BLS), there were 151k, 000 net new jobs created in the month of January, and the unemployment rate fell to 4.9%. The continuing increase in new job creation and removal of slack in the labor market is causing the Phillips-curve-obsessed Fed to maintain a tightening stance on monetary policy.
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Wednesday, December 16, 2015
Consumer Prices: A Sticky Situation / Economics / Inflation
By: Gary_Tanashian
We have noted anecdotally that there is a creeping inflation in the system. It does not show up in commodities, which are in a post-bubble (ah, the good old ‘China story’ that was so vigorously promoted to a degree that would make a gold bug promoter blush) melt down. Crashing costs like that are providing the Goldilocks-like balance to rising costs within the economy.
This morning, the highly recommended Daily Shot had among its macro graphs a look at the “sticky” consumer price index. That got me to go over to the St. Louis Fed website and pull a couple different views of it. First, here is SLF’s description of the sticky index…
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Wednesday, November 18, 2015
U.S. Inflation Setup to Upset / Economics / Inflation
By: Ned_W_Schmidt
Is U.S. inflation setup to upset the markets? Motivation for considering this question begins with graph to right. Plotted in that chart is the year-to-year percentage change for the median U.S. CPI. That measure is calculated monthly by the diligent elves at Federal Reserve Bank of Cleveland. Period of time for chart is past ten years.
Friday, October 02, 2015
Money Supply and the Fed’s Serious Inflation Risks / Stock-Markets / Inflation
By: Zeal_LLC
Traders today universally believe inflation is dead, that there is no persistent decline in the purchasing power of money. That’s what government price indexes around the world are indicating. But this false notion is one of recent years’ main Fed-conjured illusions. Price inflation is the result of rising money supplies, and they have been skyrocketing. Serious risks are mounting that they will spill into price levels.
As simple as money seems, it is very complex in both theory and practice. We all understand the idea of working to earn money to buy goods and services. But the seminal treatise on money, the legendary economist Ludwig von Mises’ “The Theory of Money and Credit” published in 1912, weighed in at 445 pages! Money is a topic that endlessly preoccupies elite central bankers with doctorates in economics.
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Friday, August 21, 2015
US BreakEven Inflation at 5-Year Lows / Economics / Inflation
By: Ashraf_Laidi
Neither higher than expected Philly Fed survey at 8.3 in August nor a dovish set of FOMC minutes has managed to ease the onslaught of selling in global equities. The old trick that a dovish Fed and poor data are good for stocks is no longer valid. An uncertain Fed drove down chances of a Sept Fed hike to 36% from close to 50% earlier in the week. Meanhwile, stock indices deepen their selloffs well after a series of DeathCrosses emerged in the S&P500, Dow-30, Dax-30, FTSE-100 and Shanghai Composite. which may suggest that they require the Fed to firmly shut the door on any 2015 rate cut.
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Thursday, August 20, 2015
Inflation - Don’t Be Fooled By Our Current Price Stability / Economics / Inflation
By: Frank_Shostak
The yearly rate of growth of the personal consumption expenditure (PCE) price index adjusted for food and energy stood at 1.3 percent in June — the same figure as in May. Note that on average since the beginning of this year the yearly rate of growth stood at 1.3 percent. Many economists have expressed satisfaction that the yearly rate of growth has been stable so far notwithstanding that it stood below the Fed’s target of 2 percent.
Sunday, August 16, 2015
Asset-Price Inflation Enters Its Dangerous Late Phase / Economics / Inflation
By: MISES
Brendan Brown writes: Asset price inflation, a disease whose source always lies in monetary disorder, is not a new affliction. It was virtually inevitable that the present wild experimentation by the Federal Reserve — joined by the Bank of Japan and ECB — would produce a severe outbreak. And indications from the markets are that the disease is in a late phase, though still short of the final deadly stage characterized by pervasive falls in asset markets, sometimes financial panic, and the onset of recession.
Wednesday, August 05, 2015
Is Japan’s Inflation Failing? / Economics / Inflation
By: Gary_Tanashian
We begin with NFTRH.com’s post from July 16 noting the message I got from a former associate (from my previous life as a manufacturer)…
“Just an update for you, some disturbing news has leaked out this week. Machine tool builders have put out blow out [lists] to all sales persons in the USA, not sure if world wide. Mori Seiki list has 600 to 700 machines on it WOW!!! never have i heard of such a huge list by any one Builder. Not sure what they see coming but it can’t be good.”
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Friday, July 31, 2015
Jackson Hole All About Inflation / Economics / Inflation
By: Ashraf_Laidi
Another FOMC statement and another swing at the law of probability. Some banks are considering the probability of a September Fed hike to be as high as 70%. Others prefer to hedge themselves with more appropriate qualitative means of referring to September as a "high probability outcome as long as....", citing the two upcoming jobs report and their average hourly earnings components. But even if the next two jobs reports are accompanied by robust hourly earnings, the inflation objective remains in doubt. We've long mentioned in previous pieces how the 20% decline in oil since early May will further retard any recovery in price growth, which has prompted the Fed to drop its phrase in the FOMC statement that "energy prices have stabilized" discussed here.
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Tuesday, June 16, 2015
Ukraine's Soaring Inflation / Economics / Inflation
By: Steve_H_Hanke
I estimate the current annual implied inflation rate in Ukraine to be 92 percent. This is the world's second-highest inflation rate, far lower than Venezuela's 480 percent but slightly higher than Syria's 75 percent.
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Sunday, June 07, 2015
EXPOSED: The Biggest Threat to Your Retirement / Stock-Markets / Inflation
By: Investment_U
Rachel Gearhart writes: This week, we are doing something different.
We are analyzing two charts - one that exposes a huge threat to your retirement and another that shows how you can protect yourself.
First, the bad news...
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Wednesday, May 20, 2015
UK Deflation Warning - Bank of England Economic Propaganda to Print and Inflate Debt / Economics / Inflation
By: Nadeem_Walayat
DEFLATION! The mainstream broadcast press appears to have swallowed the Bank of England's deflation economic propaganda hook line and sinker as they regurgitate the dangers of deflation following release of UK CPI inflation for April of -0.1% prompting headline grabbing warnings of the dangers of falling prices, the dangers of debt not being eroded by inflation, the dangers of people not spending as they wait for prices to fall, the dangers of ... you get the picture as the Bank of England sets the scene for their very own 007 Mark Carney to come to Britain's rescue with his magic PPK INFLATION gun, by promising that the Bank of England will keep price stability by aiming to bring the official CPI inflation rate back to 2%, and thus 007 Mark Carney saves Britain from the Spectre of Deflation.
Tuesday, May 19, 2015
Bank Holiday Joy as UK Inflation Stays Low / Personal_Finance / Inflation
By: MoneyFacts
Inflation figures released today show that the Consumer Prices Index (CPI) fell from 0.0% to -0.1% during April, which is the first time the UK has fallen into deflation since the sixties.
Today, all 859 savings accounts on the market beat inflation, and of these, 666* (149 no notice, 78 notice, 231 fixed rate bonds and 208 ISAs) are without restrictive criteria*.
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Wednesday, May 13, 2015
The End Is Near? Peak Trophy Asset Inflation / Stock-Markets / Inflation
By: John_Rubino
Stories about insane prices being paid for unique (and some not so unique) things are now a daily occurrence. A few examples:
Friday, May 01, 2015
Baltimore Inflation Riots / Politics / Inflation
By: Dr_Jeff_Lewis
The following is a compilation, first published at Zero Hedge, of statements made by The Baltimore Orioles Vice President, John Angelos. It struck me as fascinating on two basic levels. First off, the stunner is that a prominent elitist has spoken a bit of truth that would ordinarily be almost unutterable among such circles. The second thing is how he ultimately gets it wrong