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  • Writer's pictureJoe Carson

Consumer Inflation---Lot of Inflation Under The Hood or Hidden From Seasonal Factors

Several analysts downplayed the larger-than-expected rise in core consumer prices (0.4%), citing it as the "January effect." Several companies typically raise prices at the start of every year, mainly in the services sector (medical, health insurance, transportation, recreation. etc.) . Yet, that annual price increase is captured in the seasonal factors, which dumbs down the rise. Unadjusted core consumer prices rose 0.6% in January, services less of rental shelter rose 0.9%, and one core measure total less food, energy, shelter, and used cars rose 0.7%. The bottom line is that there is a lot of inflation under the hood or hidden from seasonal factors.

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Drummond Bell
Drummond Bell
Feb 19

It is too bad that the folks like Krugman don’t listen to you. How did he ever win the Nobel Prize? Drummond Bell

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