Seeking Alpha
Macro, economy, Professor
Profile| Send Message|
( followers)

The chart above (click to enlarge) shows some interesting data from Table 2 in today's CPI report on seasonally adjusted, annualized inflation rates for the three and six month periods ending July 2011 compared to comparable periods ending January 2012. For example:

  1. For the six month period ending July 2011, the annualized inflation rate for CPI: All Items was 4.1%, and that fell to only 1.8% for the six month period ending last month.
  2. For the three month period ending July 2011, the annualized inflation rate for "food at home" was 5.5% and for the three month period ending January 2012, the annualized inflation rate was only 1.0%.

Bottom Line: Compared to last summer for the three and six month periods ending in July 2011, inflationary pressures fell significantly towards the end of last year and in the first month of 2012 for the three and six month periods ending in January. Inflation for food at home has fallen to only 1% (at an annual rate) for the November-January period.

Source: Inflationary Pressures Were Falling By Year's End