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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Joe S Pack who wrote (26265)	5/16/1999 2:23:00 PM
From: Judy	Respond to of 50167

Nat, good article. CPI was exceptionally strong due to oil prices peaking because of depleting inventories coincidental with the orchestration of OPEC production cutbacks. This was further exacerbated by the refinery explosions in California that resulted in their shutdown, leading to local gasoline price spikes. (At $1.69 per gallon of medium octane gasoline at the local station, I'd say this was sheer exploitation!) Needless to say, the oil price spike is not sustainable so CPI should settle back. The recent benign retail numbers reported indicate to me that GDP next month would be again benign. But my sense is that until the market receives GDP confirmation next month, both equity and bond markets may continue to trade on perceived inflationary fears.