Invisible Inflation
01/16/2013 | | core cpi, core inflation, core ppi, CPI, expansionary monetary policy, Graphs and Laughs, Graphsandlaughs, Inflation, ppi, The Fed
While the economy is improving, inflation is MIA. Wages adjusted for inflation were up just 0.3% in 2012 after falling 1% in 2011. Meanwhile, the CPI and core CPI (excluding food and energy) were up 1.7% and 1.9% respectively in 2012. Similarly, the producer price index (PPI) and core PPI were up just 1.3% and 2.0% in 2012. With inflation this benign, the Fed will continue its expansionary monetary policy.