Posted At : June 18, 2009 10:32 AM
The Bureau of Labor Statistics reported CPI for May increased a modest +0.1% from April. (The March monthly CPI was 0.0%) Today’s (6/17) CPI is less than the consensus estimate of +0.3%. Excluding food and energy, CPI was also up +0.1% for May, which is less than the +0.3% for April. The year over year CPI is down -1.3% and excluding food and energy Y-O-Y CPI was up +1.8%. Today’s (6/17) CPI data suggests the inflation genie remains in the bottle with no inflation in sight. This is in line with what I have been saying for a long time. Inflation is not the problem. Deflation is. Quite simply, assets are being destroyed faster than the government can inflate. What they really need is about $25 trillion to make a difference, and they don’t. (thankfully or they’d spend it).
Regards – Keith Springer