Is the CPI about to show a big increase?Posted: June 25, 2010
Going against the grain, John Crudele at the New York Post foresees an unexpected jump in the Consumer Price Index in coming months (link):
The Federal Reserve has another problem — it just doesn’t know it yet.
The Fed didn’t make any change to the interest rates it controls at the policy-making Open Market Committee meeting yesterday and said “inflation is likely to be subdued for some time.”
Well, maybe not for long — at least as far as the government’s statistics are concerned.
Is he right? I don’t know, but I do know that most people (especially bond traders) seem awfully complacent about inflation these days. It would be interesting to see how the markets react to a larger-than-expected increase in CPI.