The U.S. Bureau of Labor Statistics (BLS) released their monthly Consumer Price Index report on March 12th 2019, for the 12 months through February 2019. Annual Inflation is Down (Slightly) Annual inflation in February was down very slightly from January's 1.55% to 1.52% February's CPI was 252.776 January's CPI was 251.712 up from December's CPI of 251.233, November was 252.038 Monthly Inflation for February was 0.42%, slightly below last February's 0.45%. December was -0.32%, November was -0.33%. Next release April 10th We've added another bar to the Annual Inflation Rate Chart indicating Quantitative Tightening (QT) check it out here. Annual inflation … [Read more...]
January Inflation Drops Sharply
The U.S. Bureau of Labor Statistics (BLS) released their monthly Consumer Price Index report on February 13th 2019, for the 12 months through January 2019. Annual Inflation is Down Annual inflation in January was 1.55% down from 1.91% in December and 2.18% in November. January's CPI was 251.712 up from December's CPI of 251.233, November was 252.038 Note: January's CPI was only slightly above the 251.588 back in May. Monthly Inflation for January was 0.19%, December was -0.32% virtually identical to November's -0.33%. Next release March 12th We've added another bar to the Annual Inflation Rate Chart indicating Quantitative Tightening (QT) check it out … [Read more...]
Gold as an Investment
The main idea behind investment is to grow and preserve wealth, and in many cases, find unique ways to generate more income. Popular wisdom has it that when interest rates rise gold prices fall because the opportunity cost of holding a non-interest bearing asset is growing. However, contrary to popular wisdom, recent interest rate hikes by the US Federal Reserve have coincided with a rising gold price. At the same time, investor confidence in the stock market is faltering due to the FED's actions. Thus many investors can be seen rushing to the financial security offered by safe-haven assets such as gold. Rising Interest Rates Quantitative Tightening This is why gold … [Read more...]
2018 Ends with More Disinflation
The U.S. Bureau of Labor Statistics (BLS) released their monthly Consumer Price Index report on January 11th 2019, for January 1 through December 31, 2018. Annual Inflation is Down Annual inflation in December was 1.91% down from November's 2.18%. December's CPI was 251.233 which was below November's 252.038, below October, September and even below the 251.588 in May. Monthly Inflation for December was -0.32% virtually identical to November's -0.33%. Next release February 13th Monthly Inflation: According to the BLS commissioner's report, "In December, the Consumer Price Index for All Urban Consumers fell 0.1 percent on a seasonally adjusted basis; rising 1.9 percent over … [Read more...]
How Inflation and Interest Rates Relate
In addition to sounding similar interest and inflation are amazingly inter-related. And in effect interest rates incorporate a "negative feedback loop" into inflation. When people think of the word inflation they generally think of how inflation affects them. They see rising prices of common commodities like gasoline or food and worry about the rising cost of living. But that is simply the effect of inflation and it is technically referred to as "price inflation" but the cause of price inflation itself is actually much more complicated. In the short run, prices can rise due to a shortage in supply, such as a gasoline shortage caused by a refinery having to shut down due to a … [Read more...]
November was Deflationary
The U.S. Bureau of Labor Statistics (BLS) released their monthly Consumer Price Index report on December 12th 2018, for the 12 month period through the end of November. Annual Inflation is Down Annual inflation in November was 2.18% down from October's 2.52% and below September's 2.28% and the 2.70% in August. CPI was 252.038 in November below October, September and the 252.146 in August. Monthly Inflation for November was -0.33 October was 0.18% in September it was 0.12%, compared to virtually zero in November 2017. Next release January 11th Monthly Inflation: According the the BLS Commissioner's report: "In November, the Consumer Price Index for All Urban Consumers was … [Read more...]
Cryptocurrencies and Inflation
The current fascination with "Crypto" has led to questions about how cryptocurrencies and inflation relate. In our article, What is the Real Definition of Inflation? we explained that there is a major difference between the cause and the effect of Inflation and unfortunately both are loosely called "Inflation". More accurately the cause is "monetary inflation" i.e. an increase in the money supply and the effect is "Price Inflation" i.e. an increase in the cost of goods and services. Can Cryptocurrencies "Cure" Inflation Since the dawn of money, there has been a fear of debasement. In the early years, when gold and silver were the primary forms of currency it was possible that another … [Read more...]
October Inflation Up Slightly
The U.S. Bureau of Labor Statistics (BLS) released their monthly Consumer Price Index report on November 14th 2018, for the 12 month period through the end of October. Annual Inflation is Up Annual inflation was 2.52% in October up from 2.28% in September. CPI was 252.885 in October up from 252.439 in September, and 252.146 in August. Monthly Inflation for October was 0.18%, 0.12% in September, compared to -0.06% in October 2017. Next release December 12th Monthly Inflation: According the the BLS Commissioner's report: "The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in October on a seasonally adjusted basis after rising 0.1 percent in … [Read more...]
Did the Democrats Really Vote Against the Social Security Cost of Living Increase?
There is a meme circulating around Facebook right now about Democrats voting against the 2.8% Cost of living increase. Normally, here at inflationData we try to avoid politics unless it directly relates to inflation, or our other major topics covered. But in this case I feel compelled to address this issue. The quick answer is that this is "NOT TRUE". However, if the MEME was phrased slightly differently it would be "TECHNICALLY TRUE". If the Meme said, "NONE of the Democrats voted FOR the Social Security Cost of Living Increase" it would be "TECHNICALLY TRUE". Likewise, if it said "NONE of the Republicans voted FOR the Social Security Cost of Living Increase" it would also … [Read more...]
September Annual Inflation Down to 2.28%
The U.S. Bureau of Labor Statistics (BLS) released their monthly Consumer Price Index report on October 11th 2018, for the 12 month period through the end of September. Annual Inflation is Down Annual inflation was down from 2.70% in August and 2.95% in July to 2.28% in September. CPI was 252.439 in September, 252.146 in August, 252.006 in July and 251.989 in June. Monthly Inflation for September was 0.12%, August was 0.06%, July was 0.01%, and June was 0.16% compared to 0.53% in September 2017. Next release November 14th Monthly Inflation: Annual inflation for the 12 months ending in September was 2.28% down from 2.70% in August. "The Consumer Price Index for All … [Read more...]
