CPI Inflation Cools Amid Falling Oil Prices and Slowing Rents

With the CPI coming in at 2.7% last week– lower than the expected 3.1% – markets rallied at the hope that inflation is being tamed. 2.7% is still nearly a full point higher than the Fed’s 2.0% goal, and this hope is misplaced: the Fed’s latest cuts will only drive inflation higher.

The following article was originally published by the Mises Institute. The opinions expressed do not necessarily reflect those of Peter Schiff or SchiffGold.

After a long delay, the federal Bureau of Labor Statistics today reported its price inflation report for the first time since the September report. According to the report, price inflation, as measured by the CPI slowed in November, both year over year, and from September to November. (Most October CPI data was not collected due to the federal shutdown.) 

Measured year over year, CPI inflation in November was up by 2.7 percent, falling from September’s YoY increase of 3.0 percent. During the same period, the CPI rose by 0.20 percent from September to November. By comparison, the CPI rose by 0.31 percent from August to September.