Sunday, December 14, 2008

Little Talked About: Deflation Of Consumer Price Index

Here's a little talked about official measurement
that has deflated over the past 3 months and
no doubt will for more than the next several months.

The consumer price index has dropped from an
all time high in July of  219.964 

Aug 219.086 
Sep 218.783 
Oct  216.573

November will be posted shortly:
ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt

Looking through the CPI table from 1913
can anyone find a time where
more than 3 months in a row deflated?

Other than the 1920's & 30's?
1949, 1955 had minor blips.

In 1930 the high of 20.9 was in June.
It wasn't until Nov of 1946
this was exceeded with a value of 21.3

July 2008 was the highest the
Consumer Price Index has ever been, 219.964.

Any speculation on low it can go and for how long?

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