Who says there is no inflation?

cohodk

Graph of crb index

This is a graph of the crb index over the past 15 years. Notice the dramatic rally over the past 2 years. Today it broke out to new highs and more importantly broke a trend line that was capping it. I would look for a very sharp 10-15% rise in this index over the next 3 months. Tomorrows CPI # will tell a lot. Watch the yellow metal.

I know this is a fairly busy chart but basically everything is a momentum indicator of sorts. All indicators look quite strong and are all in agreement.

roadrunner

The CPI is sort of rigged to measure what usually doesn't go up. But at this point, even those items are starting to tick upwards too.
The CPI is probably understated by 30-50% in magnitude since about half the index is resistant to changes. It would make more sense to also have an API or asset price index to cover what the asset bubbles are doing. That's where most of the credit has been ending up the past few years.

The CPI, as currently calculated is a relic of the past whose real usefullness is questionable today.

roadrunner

cohodk

The CPI is probably understated by 30-50% in magnitude since about half the index is resistant to changes

Thats why it is more important to follow the CRB index rather than CPI or PPI.

Also the number chrunchers in DC were able to keep the CPI at a weak .2%. Those guys are good!!