Consumer Prices: A Sticky Situation

We have noted anecdotally that there is a creeping inflation in the system.  It does not show up in commodities, which are in a post-bubble (ah, the good old ‘China story’ that was so vigorously promoted to a degree that would make a gold bug promoter blush) melt down.  Crashing costs like that are providing the Goldilocks-like balance to rising costs within the economy. This morning, the highly recommended Daily Shot had among its macro graphs a look at the “sticky” consumer price index.  That got me to go over to the St. Louis Fed website and pull a couple different views of it.  First, here is SLF’s description of the sticky index…

First published here: Consumer Prices: A Sticky Situation