Annual inflation rose was 1.24% in November and rose to 1.50% in December. Monthly inflation for December 2013 was -0.01 or virtually Zero.
Going by the Consumer Price Index which was 233.049 in December, 233.546 in October and 234.149 in September prices were “rolled back” to below June levels when they were 233.504 but greater than May when they were 232.945. Annual Inflation was 1.50% in spite of the FED buying $85 Billion a month in Bonds lending more credence to Robert Prechter’s Deflationary scenario. You can get Robert Prechter’s 90 page deflation survival guide free here.
Historically monthly inflation rates tend to be lower in the second half of the year and often are negative ( deflation) in the fourth quarter (October, November and December) of the year. As a matter of fact, in the months since January 1954 there have been 47 negative months in the July through December months. So it appears that the majority of inflation occurs in the first half of the year and then moderates for the second half. One possible explanation is that during the fourth quarter many stores hold massive sales (think Black Friday) to reduce inventory before year end.
See our full Annual Inflation Commentary and Chart for more information. You also may be interested in Complete list of monthly inflation rates since 1913 . See the Misery Index for the combined effect of Unemployment and Inflation. If you are wondering how to Calculate the Inflation Rate ? Or you can simply use our Inflation Calculator to do the calculations for you. For more Inflation Calculators we provide a variety of tools.
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