Wednesday, May 18, 2005

Core Inflation

This Author has some difficulty with Core Inflation standing at 2.24% this month year over year. Food Costs have averaged more than that since the First of this Year. Apparel is down? Since when did Apparel knock more than one percent off the Inflation rate? The Owner-Equivalent Rent is what? It going down only reflects all those Unemployed who could not make Rent payments or mortgage payments in the last Year. Correct me if I am wrong here, but didn't the PPI go up over 1.7% since January? Are Our poor Businesspeople giving up around 8% of their Profits since the first of the Year, so We could have a stable Core Inflation?

A More Likely Scenario:

Someone (think of a West Wing episode) reached out and touched Someone else (like one of the Fed Governors), asking said Governor what type of Consumer Report could entice the Fed to stop raising the Overnight rate. We are back to the West Wing episode, with the President calling something like BLT, or the BLS; President's mistake, he doesn't like lettuce on his BLT's, or is that this Author. The Conversation probably mentioned something about reining in a stampede, lest the Chinamen charge me 2% more on my Notes. Can't have that now, can We? By the way, put some salsa on that BLT. lgl

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