« 'A Lost Generation' | Main | 'Is Obama Getting Bad Economic Advice?' »

Tuesday, September 17, 2013

'Low Inflation in August'

Calculated Risk notes that inflation is still running below the Fed's target:

Key Measures Show Low Inflation in August: The Cleveland Fed released the median CPI and the trimmed-mean CPI this morning...

Inflation Measures
Click on graph for larger image.

This graph shows the year-over-year change for ... four key measures of inflation. On a year-over-year basis, the median CPI rose 2.1%, the trimmed-mean CPI rose 1.7%, the CPI rose 1.5%, and the CPI less food and energy rose 1.8%. Core PCE is for July and increased just 1.2% year-over-year.
On a monthly basis, median CPI was at 2.1% annualized, trimmed-mean CPI was at 1.5% annualized, and core CPI increased 1.5% annualized. Also core PCE for July increased 0.9% annualized.
These measures indicate inflation is below the Fed's target.

Unemployment is too high and inflation is too low (and inflation expectations are stable). Why are we talking about tapering?

    Posted by on Tuesday, September 17, 2013 at 09:50 AM in Economics, Inflation, Monetary Policy | Permalink  Comments (24)


    Feed You can follow this conversation by subscribing to the comment feed for this post.