‘Inflation day’, what to say?

Every month on the day of the CPI release I do a ‘commemorative’ post. Only I´ve run out of titles for the post!

The first chart depicts the headline CPI, the Median CPI and alternative ‘Core’ measures – ex food and energy and the 16% trimmed mean.

Note how all measures hang close together slightly below the ‘magic’ 2% number, with the exception of the Median CPI which ‘sits’ right on 2%.

Given the other disappointing data released today – unemployment claims and Philly Fed Index of Business Activity – coupled with the astonishingly ‘stupid’ FOMC minutes released yesterday, the markets ‘spooked’:

Minutes from the central bank’s January meeting showed growing unease over future Fed stimulus. Stocks suffered their worst day in more than three months, gold and oil sold off and the market’s so-called fear gauge—the VIX—jumped 19%, its biggest one-day rise since November 2011.

But looking at the inflation chart above, we see that the Fed has inflation exactly where it wants and that´s all that matters to that august body. The rest is ‘crap’!

And look at a measure of inflation expectations. I do those every month and pray that they start moving up. It appears God´s not listening!

Just thought of a title: “When I woke up this morning, you were on my mind…”