Business Insider: Over the past year, slowing global growth, a precipitous decline in commodities prices and historically low inflation rates in developed markets all combined to foster fears of deflation. Recent data suggest these fears are unwarranted, however, at least in the U.S. More specifically, both the headline consumer price index and the core CPI measure, which excludes food and energy, have been on upward trajectories since the start of 2016. Part of the reason for this trend is that energy price declines in late 2014 are contributing to positive base effects today as they roll off from year-over-year data measures. Core inflation’s strength is also noteworthy. Core CPI increased at a 0.3 percent month-over-month rate in both January and February, bringing the year-over-year rate of growth to 2.3 percent, a level not seen since early 2012.
The authors are wrong:
Yes, deflation is still here. Take away Chinese home purchases and we have deflation, about a 1.5% YoY drop in prices. The temporary uptick in February was temporary and is dropping again in April.
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