This Morning's CPI Report Proves Once Again Commodity Prices and Inflation Integrally Linked

Nov.16.06 | About: SPDR S&P (SPY)

This morning's CPI report once again confirmed what the ISM commodities survey has been telling us for some time - inflation is trending lower.

Below we have updated our chart of the ISM commodities survey vs. the year/year CPI. As the chart details, last month's decline in the number of commodities rising in price correctly anticipated today's decline in the CPI.

click to enlarge

cpi vs. ism