Consumer prices rose .1% in May from the previous month, excluding food and energy prices also rose .1%. On a yearly basis, CPI fell 1.3%, the largest decrease since April 1950. The YoY number will probably continue to worsen, considering we have yet to compare this recent trend in prices to last summer where YoY CPI hit a peak of +5.6% in July and was still +.3.7 in September.
This part of the business cycle also makes it very difficult for business to pass along production costs to the consumer. With so much money in the market today, thank you Helicopter Ben, it shouldn’t take much of a turnaround there to reverse the current trend in consumer prices.
Cliff J. Reynolds Jr., Junior Analyst
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