Looking at the CPI

I really don’t have a major point to make with this post, but I wanted to show you what the seasonally-adjusted Consumer Price Index looks like. Most often, we only see the rate of change. This is the raw index.

Leaving aside the discussion of the accuracy of the CPI in measuring inflation, we can see how unexciting the official data series really is. This is a very odd time in economics in that people are very worried about both deflation and hyperinflation. Looking at the data, I just don’t get it.

Maybe something will change soon, but it’s sure taking its time. If the past is prologue, at least in the short-term, I don’t see much of a need to worry about deflation or rapid inflation.

Posted by on November 18th, 2010 at 12:19 pm


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