By Tim McMahon, Editor The monthly inflation rate dropped like a rock for the second month in a row. Journalists touted last month's drop as "the largest monthly drop on a seasonally adjusted basis since 1947 when the Bureau of Labor Statistics first  started tracking seasonal adjustments". What are they going to say this month when it is almost twice as large?  Largest drop since last month? This is real live deflation on a monthly basis (although not on an annual basis... yet).  Basically, deflation is falling prices (or more accurately a decrease in the money supply that results in falling prices) while disinflation is a slowing of the rate of increase in prices. Are we in a … [Read more...]