LGOV - Ex-Shelter Inflation Has Been Less Than 2% For 8 Months

2024-03-12 21:00:00 ET

Summary

• "Hot CPI" read the headlines today, referring to the 0.4% rise in the February CPI and the 3.2% year-over-year change in the CPI.
• Inflation is running hot only if you think it makes sense to look at the year-over-year rise in nationwide housing prices 18 months ago.
• If you omit that one item (which comprises about one-third of the CPI), then you find that the year-over-year change in the CPI has been less than 2% for the past 8 months.

"Hot CPI" read the headlines today, referring to the 0.4% rise in the February CPI and the 3.2% year-over-year change in the CPI. My take: Inflation is running hot only if you think it makes sense to look at the year-over-year rise in nationwide housing prices 18 months ago....

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