Inflation is Falling!

No it isn’t.

The promoters of the next inflation problem are hard at work and one month’s twitch in a southerly direction will only serve to keep them hard at work. By whatever means they measure the concept known as “inflation”, it faded a bit in October.

Annual inflation rate in the US fell to 1.2% in October of 2020 from 1.4% in the previous month and below market expectations of 1.3%. The rate remains well below 2.3% in February before the coronavirus pandemic hit. Cost of medical care commodities dropped (-0.8% vs 0.9% in September); and energy prices declined further (-9.2% vs -7.7%). Also, cost of transportation services continued to fall (-5.1%, the same as in August). On the other hand, inflation was steady for food (at 3.9%) and shelter (at 2%) while deflation for apparel softened (-5.5% vs -6%). In addition, prices advanced at a faster pace for cars and trucks (11.5% vs 10.3%) and new vehicles (1.5% vs 1%). On a monthly basis, consumer prices were unchanged, after increasing 0.2% in the prior month and compared with forecasts of a 0.1% gain. Annual core inflation unexpectedly slowed to 1.6% while the monthly index was down unchanged. source: U.S. Bureau of Labor Statistics

Amid the angst of the oncoming and rancorous election that has fractured the country’s very soul, politicians’ and the Fed’s dogged goal of higher prices eased a bit. If November eases as well, you’ll not be hearing any more about how slowly the Fed will ease out of well, easing mode. You’ll hear about how the Fed is going to continue to firmly backstop the economy with inflationary policy as far as the eye can see… including the manipulation of bonds and other esoteric means (MMT TMM, total market manipulation).

Repeat after me: Inflation IS the economy.

inflation

For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed interim market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.

Testimonials