The Consumer Price Index followed up this morning on yesterday’s Producer Price Index. The message: Deflation is here. Prices dropped 0.4% year-over-year in the month of March. That was the single biggest decline going all the way back to August 1955. The “core” CPI is still up 1.8% on the year, but even that has generally been falling from its recent high of 2.9% in September 2006.
{ 2 comments… read them below or add one }
Mike,
I hear what you’re saying about deflation but it’s a different story out here in the trenches. Groceries are higher priced. I see the prices I’m paying and I say they are going UP! At work the vending machine prices have all gone UP 20-25 cents. At the restaurants I go to the prices have gone UP $1.00 – $2.00. This reminds me of the movie Princess Bride where the guy kept saying it’s inconceivable. Finally one guy says “I don’t think you know what inconceivable really means.”
Hey Mike, I follow your stuff. Keep up the good work. Check out my most recent website.. THEBANKBAILOUTSONG.COM It might make some of the bank garbage we’ve all seen lately a little easier to stomach.
Cheers
Sincerely,
Steve Maloof