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Bureau of Labor Statistics: Inflation Down

Annual Inflation Chart

The U.S. Bureau of Labor Statistics released their monthly Consumer Price Index (CPI) data on Wednesday December 17th for November and reported lower inflation. The CPI for November was 236.151 down from 237.433 for October. This resulted in a monthly decrease in prices of -0.54% and an annual inflation rate of 1.32% down from 1.66% in October. View the chart and read the full commentary on the current annual inflation rate. Although the FED has been targeting a 2% annual inflation rate, rates are currently … [Read more...]

Crude Oil and Gold

Oil Priced in Gold

Because inflation decreases the value of of money, in order to have a "yard stick" of constant value it is necessary to use the inflation adjusted price when we consider the price of a commodity like Oil. Here at InflationData we have provided a variety of charts of the inflation adjusted price of commodities like Oil, Gasoline, Electricity, Natural Gas, Stock Market, Housing Prices, Education Costs and much more. But each of these requires you to rely on potentially flawed inflation statistics generated by some outside agency or government. If that agency has an agenda other than accuracy your cost estimates could be flawed. But there is an alternative and that is to compare your … [Read more...]

Inflation Flat for October

Annual_Inflation_chart_sm

The Bureau of Labor Statistics released the Inflation rate for the month of October today. Annual inflation remained steady at 1.66% even though prices fell from the month previous (i.e. monthly inflation was -0.25%). However, since monthly inflation was -0.26% in October 2013 annual inflation rates remained virtually identical as October 2013 was replaced by October 2014 in the calculations. The FED has stated that it's goal is to maintain inflation at a steady 2%. But as we can see from the chart they have rarely achieved that  goal. If the goal was to remain below 2% we could say they have done very well since 2012 however during that time-period the FED has been fearing deflation … [Read more...]

Inflation Down Again

Mip-reality-Dec-2013a

The Bureau of Labor Statistics (BLS) released the September inflation numbers on October 22nd and inflation is lower for the fourth  month in a row. Annual inflation in May was 2.13% in June it was down to 2.07% (although the BLS rounded both to 2.1%). In July inflation fell to 1.99% and in August it was down to 1.70% and in September it was 1.66%. Once again the BLS rounded both August and September to 1.7%. The last few months are a perfect  reason why it is important to use our two decimal place inflation calculations. So although we have seen a steady decline, using the BLS numbers you would see 2.1%, 2.1%, 2.0%, 1.7%, 1.7% and so the decline is not so obvious.   As the inflation rate … [Read more...]

Where is Gold Headed?

30 day gold

This week has been tumultuous for the markets with steep market drops and subsequent rallies.  Over the last month gold has been as high as $1260 subsequently it fell steadily to $1190 for a 5.5% drop. But then gold bottomed near $1190 and as of this writing it has risen above $1220 for a 2.5% rally in a couple of days.  So what does that mean for the price of gold? Is it doomed or is the bottom in and we are seeing bargain prices? This week two of our favorite commentators Casey Research and Elliott Wave International have both jumped into the discussion and I present their views here.  ~ Tim McMahon, Editor    Gold: Time to Prepare for Big Gains? By Casey Research Years of … [Read more...]

Inflation Falls 3rd Straight Month

MIP-Reality 9-17-14

The Bureau of Labor Statistics (BLS) released the August inflation numbers today and for the third straight month inflation is lower. The annual inflation rate for the 12 months ending in May was 2.13%. The June inflation numbers were 2.07%. In July inflation fell to 1.99% and in August it was down to 1.70%. As the inflation rate falls this is "disinflation"  on an annual basis although July and August were "deflationary" on a monthly basis, i.e. each monthly number was below zero at -0.04% and -0.17% respectively. Our Moore Inflation Predictor (MIP) is generally quite accurate. Last month the MIP forecast a slight decrease in inflation for August but we actually got a bit larger 14.5% … [Read more...]

Where is Gold Headed?

Inflation Adjusted Gold

To get the true measure of anything it is important that you use a standardized measurement. This of course is why a "foot" or "inch" eventually became exactly a certain length and didn't vary based on each particular person doing the measuring. And more recently it is why Celsius measurement relates to the exact freezing and boiling points of water at an exact atmospheric pressure. It is also why,  when we measure a commodity like Gold or the stock market we need to use a scale that doesn't change. Unfortunately, the typical measurement i.e. the U.S. dollar is always changing in value. That is the dollar depreciates due to inflation thus changing the measurement on a daily (or at least … [Read more...]

Gasoline Taxes by State

Gasoline and Highway Taxes

Yesterday we looked at the BLS' release of the July Inflation numbers and that lead to a discussion of gasoline prices and the correlation between high gas prices and  politics.  The first thing we looked at was the graphic of gasoline prices by state. And then we looked at the political landscape based on the percentage of the state that voted Democrat or Republican.  We looked at the following graphic and noted that "the more blue the more Democrat and the more red the more Republican (which by the way is backwards compared to the rest of the world) and incidentally almost exactly backwards for the gasoline chart as well.  There appears to be a very high correlation between high gas … [Read more...]

BLS Releases July Inflation Numbers

Aug 2014 Gasoline Prices

The U.S. Bureau of Labor Statistics released their inflation numbers for July on August 19th. The basic summary they emailed read as follows: CPI for all items rises 0.1% in July as food prices rise but energy prices decline 08/19/2014 On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers increased 0.1 percent in July after rising 0.3 percent in June. The index for all items less food and energy rose 0.1 percent in July, the same increase as in June. If you just read that what impression would you get? Maybe that inflation is UP?  At least that is what the headline implies. But then it says, energy prices are down. And it also implies … [Read more...]

Inflation Flat in June

AAA June Gasoline Prices

The Bureau of Labor Statistics released their Consumer Price Index (CPI) for June of 2014 on July 22nd. Based on the rounded numbers this would result in an Annual Inflation Rate of 2.1% the same as last month (May). But here at Inflation Data we look at it to two decimal places and based on that we can see that in May the rate was actually 2.13% and in June it fell ever-so-slightly to 2.07%. Many will say that it isn't statistically significant and it quite possibly isn't but it is quite possible that inflation is heading down again. Time will tell. I find it interesting that both the WSJ and Reuters top articles on inflation today say inflation is "Up"  WSJ:Spike in Gas Costs Pushes Up … [Read more...]