Annual inflation for the 12 months ending in May 2017 was 1.87%. Inflation has steadily moved lower month by month from its peak of  2.74% in February. First falling to 2.38% in March, then down to 2.20% in April, and finally 1.87% in May. Although Inflation has fallen it is still slightly  above its 12 month moving average (Red Line) indicating that the short-term trend is still up, although the gap is closing, a cross below the moving average would indicate that the short term trend has switched to "down". Since 2008, there has been a battle between inflation and deflation with the FED fighting against deflation. In March, the FED has switched sides and is raising interest rates. … [Read more...]