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Politics : High Tolerance Plasticity

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To: cnyndwllr who wrote (45)2/21/2001 2:13:53 PM
From: The Ox  Read Replies (1) of 23153
 
I don't think the CPI is an anomaly but I think we need to look at it in the context of rising energy prices trickling through the different categories. The core rate of .3 translates to roughly 3.6% inflation. While higher than the FED wants, it's not exactly run away at this stage. We are using comparisons to last years where energy prices were significantly lower. I doubt anyone expects a repeat of the Oil/NG price runs from last year. Were NG to double from here by next February, there will be bigger problems facing this country other than 'simple' inflation. I believe the FED was targeting inflation in the 1 to 2.5% range but this could just be my perception.

Note, a number of my short term indicators I watch are going from yellow to red....be careful out there!
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