Friday, June 13, 2008

Tame "core" inflation?

The U.S. Labor Department reported the consumer price index (CPI) gained 0.6% in May. Excluding food and gasoline the CPI went up only 0.2% as economists had forecast. The yearly increase of CPI went up to 2.1% just above the Fed's "comfort zone" of roughly 1.5% to 2%.

Do you know anyone who lives predominantly on "core" (i.e., no food and no gasoline)? I didn't think so. We will have to wait and see what the Fed's reaction to this is.

Labels: ,

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home