Core CPI Rises At Slowest Pace In 14 Months As Food Costs Jump

Tyler Durden's picture


Consumer Price Inflation rose a mere 0.1% MoM in July, its equal lowest since November 2013 and in line with expectations as falling energy and transportation costs (both -0.3% MoM) led the stabilization (with a 5.9% plunge in airfares). The biggest drop was in personal computers (-1% MoM) which is now -6.0% year-over-year. Food prices rose 0.4% MoM. Ex-food-and-energy, prices also rose 0.1%, missing the 0.2% expectations, to the slowest pace of core inflation since April 2013. So much for all that inflation is about to break out and tear bond yields higher chatter... (no matter how real or unreal the government's hedonically-manipulated data is).



The 2-month change in Core CPI swung from hottest in 7 years to coldest in 14 months...


Chart: Bloomberg

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Tue, 08/19/2014 - 08:46 | 5113708 fonzannoon
fonzannoon's picture

How about those housing starts? How about home depot?

Tue, 08/19/2014 - 08:48 | 5113716 GrinandBearit
GrinandBearit's picture


Tue, 08/19/2014 - 08:51 | 5113735 fonzannoon
fonzannoon's picture

yup, it's all rigged, up until someone's gdp bombs. Then we latch on to those numbers with everything we can.

Tue, 08/19/2014 - 08:47 | 5113712 Lordflin
Lordflin's picture

Time to adjust the CPI...

Tue, 08/19/2014 - 08:48 | 5113715 dirtyfiles
dirtyfiles's picture

the good side of it is it takes less shelf's space as the packages getting smaller...

Tue, 08/19/2014 - 09:11 | 5113820 Terminus C
Terminus C's picture

With more shelf space you can place more product and provide more variety with the added bonus of more units moved.


Tue, 08/19/2014 - 08:49 | 5113720 lunaticfringe
lunaticfringe's picture

I buy and eat food everyday. I buy computers once every 4 years.

Tue, 08/19/2014 - 12:23 | 5114868 twh99
twh99's picture

How they weight the different items in the CPI is what I would like to know.

Tue, 08/19/2014 - 08:48 | 5113723 Dr. Engali
Dr. Engali's picture

Remember way back when these numbers used to matter?.... Yeah, me neither. Print away.

Tue, 08/19/2014 - 08:49 | 5113725 LawsofPhysics
LawsofPhysics's picture

Ah yes, all those things that are essential to your survival, don't count.  good luck with that.

Tue, 08/19/2014 - 08:50 | 5113727 ms8172
ms8172's picture

WHen is this Bullshit data going to be found out????

Tue, 08/19/2014 - 08:52 | 5113736 101 years and c...
101 years and counting's picture

people know it.  they see it every week at the grocery store.

Tue, 08/19/2014 - 08:50 | 5113728 101 years and c...
101 years and counting's picture

i'm getting so fat these days.  with the deflation in iPad prices,  i simply cant eat just one at a time anymore.  and then there's the iPad mini midnight snack....

Tue, 08/19/2014 - 08:54 | 5113753 Winston Churchill
Winston Churchill's picture

Peanut butter and jelly topping ?

I prefer clotted cream and jam myself.

Tue, 08/19/2014 - 08:50 | 5113731 pachanguero
pachanguero's picture

My last paycheck was six billion.  I don't need a webste.

John Corizine

Tue, 08/19/2014 - 09:13 | 5113831 Terminus C
Terminus C's picture

Now I just co-host Hillary fundraisers and be her economic adviser.


Tue, 08/19/2014 - 08:51 | 5113732 pauhana
pauhana's picture

The only things that's gone down in the last month is gas and a few hookers.

Tue, 08/19/2014 - 08:55 | 5113748 Wait What
Wait What's picture

i'm waiting for the day TD 'capitulates' and says 'coast is clear, all is well... nevermind everything we said for the last 6 yrs'

that will be the moment this whole game unravels...

that or the day ZH becomes a cheerleader for money printing, fiat, and stock 'markets' ("we were just kidding abt the riggedness... party on, buy everything")

Tue, 08/19/2014 - 12:42 | 5113752 ThisIsBob
ThisIsBob's picture

The 4 things that people have to spend their money on are food, shelter, electric/water utilities and maybe transportation.

I'd like to see some kind of CPI based on those expenses alone.  Thta would tell me how we are doing.  Don't think its good.

Tue, 08/19/2014 - 08:55 | 5113754 Chuck Knoblauch
Chuck Knoblauch's picture

The cost of bread, butter, eggs, and milk will determine the fate of America.

Tue, 08/19/2014 - 08:57 | 5113761 RattNRoll
RattNRoll's picture

Dont forget TV

Tue, 08/19/2014 - 09:02 | 5113780 Wait What
Wait What's picture

every item you mentioned is govt subsidized. tells you something about how 'fate' can be manipulated with a few trillion dollars, doesnt it?

Tue, 08/19/2014 - 09:17 | 5113822 Chuck Knoblauch
Chuck Knoblauch's picture

If it's subsidized, people should expect big price increases.

If the government is willing to pay for it, I'd hike prices ASAP.

If the government wants civil unrest, it can manipulate that scenario too.


Tue, 08/19/2014 - 08:55 | 5113759 RattNRoll
RattNRoll's picture

Lovely summer huh...

Tue, 08/19/2014 - 09:04 | 5113790 HUGE_Gamma
HUGE_Gamma's picture

just wait till the winter months and polar vortex.. these numbers will _really pick up

Tue, 08/19/2014 - 09:13 | 5113832 ejmoosa
ejmoosa's picture

I guess I should be flying three times daily and eating once a year.  Then I could really take advantage of these low prices.  

Tue, 08/19/2014 - 09:42 | 5113975 q99x2
q99x2's picture

(with a 5.9% plunge in airfares)

Thought that was from all the FBI leaks about the Jihadists and stinger missles entering the US along with the training camps that have been reported to the FBI but nothing done.

Tue, 08/19/2014 - 09:45 | 5113988 q99x2
q99x2's picture

Really it is simply FRAUD and financial terrorism by Washington D.C. against the United States of America.

Tue, 08/19/2014 - 10:00 | 5114080 orangegeek
orangegeek's picture

Feeder and Live Cattle have rolled over as have hogs.


Wheat and corn have tanked - these rolled  in May.


Give it about 3 months to show up at store shelves.

Tue, 08/19/2014 - 11:02 | 5114408 Shizzmoney
Shizzmoney's picture

Rent keeps going up

So does food

So does civil unrest

Its like thats related

or something

Tue, 08/19/2014 - 11:03 | 5114411 theyjustcantstop
theyjustcantstop's picture

so tens of millions can't afford to update their computers, fly on a vacation, because of higher priced food, and energy, and their saving on transpotation because their unemployed and don't need to drive to work, thats good news for the economy?

when is o'bamacare, (health-care ins.), going to be a cpi category beings it's not a tax, but is a mantory govt. requirement?

Tue, 08/19/2014 - 11:14 | 5114464 The Count
The Count's picture


All govt. statistics are pure bull shit.

CPI has been fudged over and over. Beef to expensive? Replace with portk. TV too expensive? Adjust the 'value' because of features. All so that CPI etc. remains artificially low and the FED can print more money with impunity.



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