A bit of deflation

Import Prices Unexpectedly Drop 0.6%, Most in 18 Months: Export Prices Drop 0.1%

Mish had a chart:

 

Too much CPI for the consumer to handle with these trade prices. Oil has been mostly stable, up to now.  But the Iran issue and Venezuela threaten.

The ten year is at 3%, I think long term trend says 2.5% is all we can handle.  Long term deflation is planned with EMs struggling to hold on.