THE BASIS POINT

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.