Really Close to a Deflationary Relapse

by: The Business Insider

On Wednesday the government reported that core-CPI -- which excludes food and energy -- rose 0.1%, suggesting perhaps a move away from the deflationary brink.

But really it was all energy that pushed prices higher, and energy has a lot to do with what's happening in Asia, and not necessarily reflective of the domestic situation.

Take that out, and keep in food, and this is what you get (click to enlarge):

chart of the day, cpi ex-energy, dec 2010Click to enlarge

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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