Thursday, January 19, 2012

December EPJ Real Core Price Inflation Index at 4.8%

For the month of December, the 12 month BLS headline CPI came in at 3.0% and the BLS "core" CPI came in at 2.2%. The EPJ-Real Core Price Index came in, for November, at 4.80%.

The EPJ-RCPI most closely measures prices on what consumers are actually spending money on a day in day out basis.

Expect major increases in all three indexes in the months ahead, as Ben Bernanke printed money works its way through the system.


  1. You will notice in the latest M2 he's printing hard and fast again...

    2012-01-02: 9751.1
    2011-12-26: 9665.5
    2011-12-19: 9666.9
    2011-12-12: 9673.2
    2011-12-05: 9640.7

  2. Is the month to month change no longer worth noting? (0% seasonally adjusted and -.2 unadjusted) No fancy annualized monthly rates? No mention of the falling year to year change (down .4%)? No mention of this being the third consecutive month with falling CPI? No quick over of the negative PPI reading? Something about inflation/deflation being seen in commodities first and then consumer goods? No mentioned of confused Keynesians? Not even a link to the actual report?

    Wenzel must be crying in a corner somewhere after reading this week's inflation reports.

    1. No, I don't think he is. You see. Austrians tend to think far more about the concept of time than other economic schools of thought. In fact, time is a fundamental part of the Austrian perspective.

      M2 flattened out a few months ago, so we should expect to see a flattening out of price inflation in certain areas of the economy at this point. However, the trend hasn't stopped, it has only paused. As you can see by the comment above yours, M2 is kicking back up again. Give it a few weeks and I assure you that m-t-m inflation will soon follow the money.

      If all you do is focus on today as if it is truth, then you'll miss both yesterday and the day before. It also helps to have an explanatory theory that doesn't rely on data alone and that explains intertemporal movements; this is where Keynesian often falter. Also of importance is WHAT goods have decreased in price and WHAT goods have increased in price. Aggregates are certainly helpful, but only if you understand their components properly.

      If you truly feel that deflation is a current problem, then you and PK will find good company in each other.

  3. Why do Krugmanites always refuse to use any other nickname than "anonymous" ? Is it so darn scary to be publicly associated with your opinions? Trolls ....

  4. Fetz, I think you are one of the smartest (and according to the photo next to your post, handsomest!) men I've come across in many years. Krugman in a moron statist, and will be proven wrong time after time, and will be celebrated by the establishment for his ignorance.