Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Bio
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
Bio
X •  LinkedIn
 
  CPI falls 0.1% in April
Supporting Image for Blog Post

 
Implications Because of falling energy prices, headline consumer prices continue to remain benign, but signs of future inflation are deeper inside today's report.  Inflation "doves" and some who even talk about deflation continue to focus on "core" prices (excluding food and energy) which are up only 1.0% versus a year ago.  While these numbers are helpful in gauging inflation, they don't show the entire picture.  We think "cash" inflation better gauges the inflation consumers are experiencing.  Cash inflation counts everything, including food and energy, but takes out "owners' equivalent rent" or OER – the government's arbitrary estimate of what homeowners would pay if they rented their own homes, and does not reflect an actual transaction.  Excluding OER, consumer prices are up 3.0% versus a year ago versus a 2.2% increase when included.  In other words, while inflation remains relatively low, the government estimate of housing prices is masking underlying inflation trends.  With the Fed holding rates near zero, deflation is not in the cards, and inflation remains a threat.

Click here to view the full report.
Posted on Wednesday, May 19, 2010 @ 12:53 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
 PREVIOUS POSTS
The Producer Price Index (PPI) fell 0.1% in April
Housing starts increased 5.8% in April to 672,000 units at an annual rate
A Shift in Our Fed Rate Outlook
Retail sales strong again in April
Industrial production increased 0.8% in April
Recent Plateau in Claims Not a Concern
The Federal Budget Deficit is a Serious Issue
The trade deficit expanded by $1.0 billion in March
"Parts suppliers can't meet manufacturers' demand" according to USA Today
Wall Street Dips, Main Street Turns the Corner
Archive
Skip Navigation Links.
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011
Expand 20102010

Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.