"Headline prices actually down, as predicted, but core inflation running above the Fed target
about that core: it’s important to make a distinction between core-as-concept and core-as-usually-measured.
The concept is that of inertial prices, which are set for extended periods and can get into a leapfrogging pattern of sustained inflation that’s hard to undo."
The usual measure is just consumer prices less food and energy.
it’s clear that core-as-measured prices are “adulterated” by commodity prices.
Looking at the forest instead of the trees
and in particular
NOTING THAT WAGES ARE STILL FLAT
it’s hard to see an inflation problem looming here. "
qed
about that core: it’s important to make a distinction between core-as-concept and core-as-usually-measured.
The concept is that of inertial prices, which are set for extended periods and can get into a leapfrogging pattern of sustained inflation that’s hard to undo."
The usual measure is just consumer prices less food and energy.
it’s clear that core-as-measured prices are “adulterated” by commodity prices.
Looking at the forest instead of the trees
and in particular
NOTING THAT WAGES ARE STILL FLAT
it’s hard to see an inflation problem looming here. "
qed
