Nothing Good Can Come Out Of The CPI

The CPI is going to come out Friday morning. Nothing good can come out of the report as it is being viewed as a non-event. However, regular unleaded gas has gone up to $3.40 is my neighborhood at the cheap station, food prices are up, import prices from China have been rising, REIS is reporting that apartment rents are rising etc. One day this data might miraculously make its way into government figures. If the CPI comes out hot some may start looking for the end of QE.

1 comment:

revelo said...

BLS says wages+benefits not rising fast, and without wage hikes, inflation is not sustainable. Workers will just have to consume less imports.

"Compensation costs for civilian workers increased 1.9 percent for the 12-month period ending September 2010..."

source: http://www.bls.gov/news.release/eci.nr0.htm

I don't know if this BLS report is worth anything. Next release Friday, Jan 28, 2011.