Posted by WARREN MOSLER on May 19th, 2010
Can’t resist the temptation to repeat my suspicions that zero interest rate policy is deflationary from the supply and the demand side.
Great number for low for long camp; gives Fed ample cover to stay on hold.
Y/Y Core now at 34yr low of 0.9%; but likely to bottom around these levels as base comparisons begin to get a bit tougher.
Headline CPI -.07% m/m; Core +.05%
Trend variables stay on trend; volatile components offsetting
- OER unch; medical 0.2%; education 0.2%
- Apparel -0.7%; Lodging away from home +1.4%