Core Inflation Contained, Consumer Sentiment Strong.
PPI (September 2012)
– PPI (wholesale inflation) Month/Month core (less food and energy) was +.0.0%
– PPI (wholesale inflation) Month/Month overall +1.1%
– PPI (wholesale inflation) Year/Year core (less food and energy) was +2.3%
The contained core is what is important as a longer term macroeconomic indicator. With the Fed’s enormous expansion of money supply the art will be in containing inflation when the economy starts growing at a faster rate.
Consumer Sentiment (October 2012)
The UMichigan Consumer Sentiment Index is 83.1. This is a large increase in the survey index.