Posts filed under “Fixed Income/Interest Rates”
We’ve been discussing quite a few inflation related issues lately.
Here’s an overview:
• Inflation/Shminflation an excerpt from Barron’s discussing the impact of oil and Fed tightening;
• The History of Inflation ex-inflation a fascinating look at the last time the "core rate of inflation" became the rage — in the 1970s.
• CPI versus Core Inflation for nearly a year as prices rose dramtically, the so-called core rate was declining.
• No Confidence . . . one of the dangers of inmlfation is its impact on Consumer Confidence and spending.
• Deficits and Interest rates do large deficits cause inflation?
• Wages & Inflation: 20 years while wages have kept pace with the cost of goods and services over the past 20 years, Housing, Higher Education, and Medical Care are what are squeezing consumers. Over the past 20 years, energy doesn’t even make the top 3.
• Anti-Bubble or Anti-Inflation? What is motivating the Fed?
• Core Prices versus Non Energy Earnings Why do those who report CPI ex-energy report SPX earnings with Energy? Isn’t that a wee bit inconsistent?
• Fun with Hedonics or: "How I learned to stop worrying about CPI and love inflation." With a title like that, do you really need any more info?
• Juiced Data Where the inflation misunderstanding all began . . .
So let me make sure I completely understand this: If we back out all of the inflationary data from the CPI, and PPI, there is, um, no inflation?
Thanks for clarifying that.
While the Dismal Set — and the majority of CNBC guests — continue to spout such foolish nonsense, its nice to see that at least the WSJ wasn’t bamboozeled. Their online headline read: Consumer Prices Climb 0.5%
"Gasoline prices shot up 8.3%, the biggest increase since February 2003.
Food prices, however, were unchanged for the first time in nine months.
Medical-care prices were unchanged after nearly 30 years of increases.
Housing prices grew more slowly in August, falling to a 0.2% rate from
0.4% in July. Automobile prices fell 0.5%, half the rate of decline
recorded in July."
You can see more from the dismal set below . . .
UPDATE I: September 16, 2005 10:54 am
Its the ultimate Hedonic adjustment: Chart of the Day shows us graphically that without the items that are going up in price, there is hardly any inflation at all!
UPDATE II: September 17, 2005 11:54 am
The first official chart from the weekend WSJ:
UPDATE III: September 24, 2005 2:54 pm
Here’s a round up of all our recent discussions on inflation
Consumer Prices Climb 0.5%
Katrina Helps Propel Jobless Claims
To Highest Level in Nearly 10 Years
WALL STREET JOURNAL, September 15, 2005 5:44 p.m.