Pantheon Macroeconomics - If you gave us $100, we'd put $90 on inflation, headline and core, being higher a year from now than it is today.  Our view, however, is not universally shared, and some commentators continue to argue that the U.S. faces deflation risks.  Exhibit one for this view is our first chart, which shows a high correlation between the PPI for finished goods prices and the CPI inflation rate, ex-shelter.

U.S. Documents | 20 May. 2016 Falling PPI Goods Prices Don't Signal Lower Core CPI Inflation
If you gave us $100, we'd put $90 on inflation, headline and core, being higher a year from now than it is today. Our view, however, is not universally shared, and some commentators continue to argue that the U.S. faces deflation risks. Exhibit one for this view is our first chart, which shows a high correlation between the PPI for finished goods prices and the CPI inflation rate, ex-shelter.

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20 May. 2016 Falling PPI Goods Prices Don't Signal Lower Core CPI Inflation

By Ian Shepherdson

If you gave us $100, we'd put $90 on inflation, headline and core, being higher a year from now than it is today. Our view, however, is not universally shared, and some commentators continue to argue that the U.S. faces deflation risks. Exhibit one for this view is our first chart, which shows a high correlation between the PPI for finished goods prices and the CPI inflation rate, ex-shelter.

Posted: 20th May 2016 in 'U.S. Documents'

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