Category: Inflation
The analysis published under this category are as follows.
Thursday, December 23, 2010
The Inflation Waves of 2011 / Economics / Inflation
By: John_Browne
One of the founding myths of the modern global financial system was that governments, especially of the developed democracies, could borrow endlessly without consequence. But, with sovereign debt crises erupting across the globe, it appears that the umbrella of perceived safety has gotten smaller, exposing some benighted countries, like Greece and Ireland, to severely rough weather.
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Thursday, December 16, 2010
U.S. Inflation Consumer Price Index Contains No Surprises / Economics / Inflation
By: Asha_Bangalore
The Consumer Price Index (CPI) rose 0.1% in November following a 0.2% gain in the prior month. The CPI has risen 1.1% from a year ago compared with a 1.8% gain in the 12-month period ended November 2009. Energy prices increased only 0.2% in November vs. a 2.6% gain in October. The price index for natural gas (-5.7%) fell but gasoline prices (+0.7%) advanced for the fifth straight month, with November recording the smallest of these five monthly gains. The food price index moved up 0.2% in November after a 0.1% increase in the prior month. The important message is that the CPI continues to show a distinct decelerating trend (see Chart 1).
Wednesday, December 15, 2010
Fed Inflation / Economics / Inflation
By: Axel_Merk
In August, Federal Reserve (Fed) Chairman Bernanke stated inflation was too low; in October, the Fed's Minutes lamented that the market appeared not to take Bernanke's August statements seriously enough. In our assessment, today's Fed statement of the Fed's Open Market Committee (FOMC), with an almost verbatim repetition of the previous FOMC statement, screams: "markets: trust us, we mean what we say."
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Tuesday, December 14, 2010
Bank of England's Inflation Targeting Mandate is Bankrupt as CPI Rises to 3.3% / Economics / Inflation
By: Nadeem_Walayat
UK Inflation for November rose once more to hit 3.3% form 3.2% which makes a mockery of the Bank of England's primary objective of targeting CPI inflation at 2%, instead of which UK inflation has been above 3% for virtually the whole of 2010. Not far behind the bankrupt Bank of England's temporary high inflation mantra is the mainstream press and major institutions and so called think tanks that have lapped up the Bank of England's Deflation threat propaganda and sleep walked their readers into high inflation disaster as inflation protection props have been pulled away one by one (NS&I RPI Indexed Certificates).
Sunday, December 12, 2010
Russia's Central Bank Concerned About Price Inflation Tsunami / Economics / Inflation
By: Pravda
Sergey Ignatyev, the head of the Russian Central Bank, did not exclude a possibility to raise the official bank rate next year to curb inflation. Ignatyev forecast the growth of crediting and the economy in 2011 by 20 and 5 percent respectively.
In November, the board of directors of the Central Bank (CB) decided to preserve the level of the official bank rate and interest rates on CB operations. The official bank rate was preserved on the level of 7.75 percent per annum on June 1, 2010.
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Thursday, December 09, 2010
Wealth Confiscation Through Inflation / Economics / Inflation
By: Mike_Hewitt
A monologue on currency devaluation through the process of inflation.
Greetings, I would like to talk about a subject of which I believe to be of great importance. It is to do with the devaluation of our currency.
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Tuesday, December 07, 2010
China Inflation Taking Off, Declares Price Controls on Walmart / Economics / Inflation
By: Mike_Shedlock
China's is overheating. Consumer prices in aggregate rose at an annual rate of 4.4% as of October. Food prices are up 10.1 percent according to China Financial Daily.
Moreover, accelerating inflation is hurting profit margins in China's service sector. China's non-manufacturing PMI fell to a nine-month low in November, with new orders in consumer service industries showing outright contraction.
Tuesday, December 07, 2010
Bernanke Is 100% Sure He Can Control Inflation / Economics / Inflation
By: James_Quinn
I don't know about you, but I'm not 100% sure about anything. The older I get, the less sure I am about everything. I question things that I was sure were true when I was 25 years old. I'm not sure I'll wake up in the morning. I'm not sure I'll survive my commute to work. That is why I was flabbergasted last night as I watched Scott Pelley interview Ben Bernanke on 60 Minutes. As a side note, boy this show has gone downhill. In the old days of real journalism, Mike Wallace would have scorched Ben Bernanke, pointing out his phenomenal ability to be wrong or clueless on every financial issue the country has faced in the last 10 years. Today, Pelley under hands softball questions to Bernanke and never challenges him. It was a pathetic display of journalism.
Monday, December 06, 2010
Gold, Keynesian Economics and Wall Street Journal Deflation Idiocy / Economics / Inflation
By: Howard_Katz
Friday’s Wall Street Journal was full of “optimistic” news for the U.S. economy. It reported:
“Retailers’ reports of robust November sales offered more evidence that the lackluster U.S. economy may finally be gaining momentum, despite stubbornly high unemployment.
“According to 27 retailers tracked by Thomson Reuters, sales at stores open a year or more rose 6% last month, sharply exceeding a year-earlier gain of just 0.5%. Online retailing also showed sizable gains.”
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Friday, November 26, 2010
The Best Way To Play U.S. Sleeper Inflation / Economics / Inflation
By: Sean_Brodrick
Like gasoline seeping across a floor, inflation is slowly spreading across the globe, waiting to ignite. When it finally combusts, the move higher in prices could be explosive. Yet many U.S. citizens are going to be caught totally unaware because prices — for now — are generally flat and even falling.
This has opportunity written all over it. I’ll get to that in a bit. First, some facts on how the signs of deflation are around us:
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Friday, November 26, 2010
BLS Makes Sure there is No U.S. Food Inflation / Economics / Inflation
By: Fred_Sheehan
"Moreover, inflation has been declining and is currently quite low, with measures of underlying inflation running close to 1 percent....In this environment, the Federal Open Market Committee (FOMC) judged that additional monetary policy accommodation was needed to support the economic recovery and help ensure that inflation, over time, is at desired levels." -Federal Reserve Chairman Ben S. Bernanke, Sixth European Central Bank, Central Banking Conference; Frankfurt, Germany; November 19, 2010
Tuesday, November 23, 2010
Commodity Price Inflation, What is Likely Impact in the United States? / Commodities / Inflation
By: Asha_Bangalore
The S&P GSCI commodity index has moved up 11.3% from a year ago on November 19, 2010 (see Chart 1). The trade weighted dollar declined 1.2% from a year ago as of November 12, 2010. The immediate inference is that the extent of gains in the commodity price index is larger than the decline of the dollar. By implication, commodity price gains reflect more than the depreciation of the greenback.
Saturday, November 20, 2010
Is Inflation Lurking Around the Corner? / Economics / Inflation
By: Asha_Bangalore
The potential inflationary impact of the second round of quantitative easing, QE2, is at the top of the list of charges critics have complied against the Fed. Let us look at the current evidence on inflation, inflation expectations, and the Fed's tool kit to fight inflation to conclude if the fear of inflation is credible.
Starting with the Consumer Price Index (CPI), the October CPI rose 0.2% and the core CPI, which excludes food and energy, held steady. The year-to-year change of both price measures shows a decelerating trend since the early part of the year (see chart 2).
Thursday, November 18, 2010
U.S. Inflation Remains Contained, In Contrast to Fed’s Preference / Economics / Inflation
By: Asha_Bangalore
The Consumer Price Index (CPI) moved up 0.2% in October, after a 0.1% gain in the prior month. The year-to-year change is 1.2%, with the CPI trending down after a 2.7% increase in December. During the July-October period, energy prices have lifted the overall CPI. In October, higher gasoline prices (+4.6%) were responsible for nearly 90% of the increase in the CPI. The CPI excluding energy held steady in October after a similar reading in the prior month. Food prices inched up 0.1% in October, putting the year-to-year gain at 1.4%.
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Tuesday, November 16, 2010
Quantittaive Easing Ignites Real Price Inflation / Economics / Inflation
By: Q1_Publishing
The Federal Reserve’s moves are backfiring.
The Fed’s recent announcement that it’s going to keep the free money spigot flowing for at least another six months was the last straw.
Monday, November 15, 2010
Bank of England Inflation Propaganda Suggests Invisible Depression, Bankrupting Ireland Seeks Bailout / Economics / Inflation
By: Nadeem_Walayat
The Bank of England released its latest quarterly inflation report that shows that after a near year of temporary CPI Inflation mantra at above 3%, Mervyn King, the Bank Governor now expects CPI to spike to 3.5% during 2011 before falling back to below its 2% target and therefore implying that the real threat that the press and population should concern themselves with is DEFLATION.
Monday, November 15, 2010
Fed Inflationary Money Printing Propels Stocks 'Stealth' Bull Market to New High / News_Letter / Inflation
By: NewsLetter
The Market Oracle NewsletterNov 8th, 2010 Issue #59 Vol. 4
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Tuesday, November 09, 2010
Fed Pushes U.S. Economy into an Inflationary Death Spiral / Economics / Inflation
By: Michael_Pento
It seems the Fed has given up on the idea that the country can build a viable and stable economy through the conventional means. Instead, our central bank has resorted to once again growing GDP and increasing employment by the creation of asset bubbles. This is a dangerous game that no one, least of all the Fed, knows how to play.
Monday, November 08, 2010
How the Government Lies About Low CPI Inflation, Krugman Deflation Propaganda / Economics / Inflation
By: Submissions
Robert Wenzel writes: With commodity prices soaring, Paul Krugman is in a trap with his deflation call, so he has decided to turn to Richard "I am not a crook" Nixon to explain why price inflation is really not happening.
Krugman tells us to forget about the prices that are going up. They are too volatile, he tells us. He says that what we should focus on are tricky sticky price indexes, specifically, core CPI.
Monday, November 08, 2010
Fed Debases the Imperial Dollar, Inflation, Stagnation and Higher Interest Rates Ahead / Economics / Inflation
By: Prof_Rodrigue_Trembl
"Under a paper money system, a determined government can always generate higher spending and hence positive inflation."Ben Bernanke, future Fed Chairman (in 2002)
“My thesis here is that cooperation between the monetary and fiscal authorities in Japan could help solve the problems that each policymaker faces on its own. Consider for example a tax cut for households and businesses that is explicitly coupled with incremental BOJ purchases of government debt – so that the tax cut is in effect financed by money creation. Moreover, assume that the Bank of Japan has made a commitment, by announcing a price-level target, to reflate the economy, so that much or all of the increase in the money stock is viewed as permanent.”Ben Bernanke, future Fed Chairman (in 2002)
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