Inflation

A welcome slowdown

Inflation numbers came in yesterday and they looked really good! Here’s core inflation on a monthly basis:

The more interesting (in my opinion) read came from the full inflation number, which includes food and energy:

This actually went negative compared to last month! That’s not a big surprise given the drop in energy prices though.

Now, some people will say to just focus on core and not worry about volatile food and energy prices but…don’t people have to buy gas and eat food? It matters. A lot.

Either way both metrics look good and hopefully this is the start of an ongoing moderation of inflation!