Tuesday, May 15, 2007

Deflation or inflation?

Excluding food and energy prices, the so-called core CPI rose 0.2%, in line with expectations, and cutting the annual gain in the core down to a one-year low of 2.3%...on the one hand, we have plenty of money supply; on the other, overcapacity in a bunch of industries(housing, autos, retail). I am not one of those who will point fingers at the Federal Reserve; they are looking at data that is difficult to disect, and have to look forward. It's useless to point fingers since no one else has better data...

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