Chart of the Day: Still No Inflation!

Dylan Matthews points out today that despite the predictions of the doomsayers, inflation continues to be nearly nonexistent. According to the BLS, the headline CPI figure stood at zero in July, and core inflation (which excludes food and energy) was at 0.1%.

As it turns out, that zero number is a statistical artifact. The real number is 0.045%, which rounds down to zero. But if you multiply by 12 to get the annualized figure, it’s still a very, very modest 0.5%. The chart below shows monthly inflation for 2012, annualized for both headline CPI and core inflation.

So why is the Fed still so concerned about inflation, when it’s so well controlled and unemployment is still so high? It is a mystery.

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It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

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Signed by Clara Jeffery

Clara Jeffery, Editor-in-Chief

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