Wikinvest Wire

Prices increase, wimpy deflation arrives

Friday, February 20, 2009

Consumer prices rose for the first time in six months, largely due to higher energy costs, as the government's overall price index gained 0.3 percent in January following a decline of 0.8 percent in December.
IMAGE On a year-over-year basis, unadjusted prices were unchanged but, when adjusted for seasonal variations, prices were down 0.2 percent as shown above.

The picture remains one of falling energy prices and not much else as food prices continued to rise last month and remain up 5.0 percent from year ago levels. Similarly, education and communication costs are up 3.6 over the last year and medical care costs have risen 2.6 percent.
IMAGE If this is deflation, it's the wimpiest deflation the world has ever seen.


staghounds said...

Funny in a way. The CPI is cooked to make inflation appear smaller than it actually is, and even now it won't show this unicorn-borne "deflation".

Anthony J. Alfidi said...

Wait until the fiscal stimulus contractors start bidding for steel, cement, copper, etc. to build infrastucture in later 2009 / early 2010. We'll see inflation in commodity prices by then.

Jim Rogers' commodity bull has legs after all.

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