July CPI Shows 1st Increase In 2.5 Years

Bet they’re sorry now for all that deficit spending, two decades of 0 rates, and untold QE ‘money printing’- inflation is finally ripping!

Not

July CPI Shows 1st Increase In 2.5 Years

May 25 (Dow Jones) — Japan’s core consumer price index rose 0.1% in July from a year earlier for the first time in two and a half years, despite a revision to the data’s base year giving a downward bias to the index, government data showed Friday.

The outcome was higher than the median forecast for a 0.1% drop in a poll of economists surveyed by Dow Jones and the Nikkei. The index declined 0.2% from a year earlier in June.

Core CPI for the Tokyo metropolitan area–an early indicator of price trends for the rest of Japan–fell 0.2% on year in August, compared with a forecast 0.1% fall. In July, it declined 0.1%.

The results came after the government changed the data’s base year to 2010 from 2005, which was expected to produce a lower-than-usual figure.

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6 Responses to July CPI Shows 1st Increase In 2.5 Years

  1. Hepionkeppi says:

    I’m beginning to think price movements and business cycles correlate like minecraft clock with time in hell

    Reply

  2. Same thing is happening here: See: http://research.stlouisfed.org/fredgraph.png?g=1Pi

    Zero relationship between federal deficit spending and inflation. Who’da thunk?

    Rodger Malcolm Mitchell

    Reply

    Mario Reply:

    @Rodger Malcolm Mitchell,

    fascinating. In fact it appears to show an INVERSE relationship no?

    Reply

    WARREN MOSLER Reply:

    counter cyclical deficits from the ‘automatic fiscal stabilizers’ work against deflation during downturns

    Reply

  3. Save America says:

    Deflation in hedge fund manager fees:

    http://www.finalternatives.com/node/17846
    Tudor Investment Corp. is set to introduce a new fee structure for clients that will allow them to choose how to pay levies among the industry’s highest.

    The Greenwich, Conn.-based firm will unveil a new share class of its flagship BVI Global Fund early next year. Clients who choose to move their assets to the new share class will pay a 2.75% management fee, down from the current share class’s 4%. But they’ll also pay a 27% performance fee, up from the current 23%, The Wall Street Journal reports

    Warren, are you getting 2 and 20? Maybe you should drop to 1 and 10 and prove deflation is everywhere ;)

    While we are on Paul Tudor Jones memes and deflation:

    http://www.ft.com/cms/s/0/18f18194-bdf9-11e0-ab9f-00144feabdc0.html?ftcamp=rss#axzz1WAq08SVY

    Hedge fund to bet against western economies
    By Sam Jones, Hedge Fund Correspondent

    Lee Robinson, the outspoken founder of London hedge fund Trafalgar Asset Managers and former top Tudor Investment Corporation trader, is readying a new hedge fund to profit from the devaluation and collapse of western economies.

    Mr Robinson has already begun marketing of his new “Altana Sovereign Diversity Fund” to investors.

    The fund is positioned to take advantage of the devaluation of the dollar and “stealth defaults” of developed countries, reflecting Mr Robinson’s long-held bearish views on the prospects for the global economy.

    Marketing materials for the new fund seen by the Financial Times identify France, Germany, Italy, Spain, the UK and US as countries that it will be positioned against.

    The fund is designed to “profit from the global secular wealth shift from debtor to saver nations”, the presentation says.

    “Based on the increase in the quantity of paper money, wealth may fall 30-60 per cent. This trend would likely take generations to reverse,” it continues.

    Mr Robinson quotes the economist John Maynard Keynes on the frontispiece of the confidential presentation, which has been discreetly distributed to potential investors: “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.”

    A prototype version of the strategy has returned 3 per cent since inception in October, before fees.

    As well as taking long-term positions against western economies, the fund will take advantage of short term currency trends and invest opportunistically in a range of financial instruments to “enhance returns”.

    Reply

  4. Mario says:

    when the facts don’t fit the theory…the facts must be wrong. Didn’t you go to university like everyone else?

    Reply

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