Hot on the heels of yesterday's low PPI [3] and this morning's falling CPI [4], we thought it worth noting (given The Fed's pre-occupation that inflation is running too low) that the price of milk - that staple of the American diet - just hit an all-time high. Nope, no inflation here...
[5]
As an aside, while correlation is not causation, the price of milk and the growth of the Fed Balance Sheet have an 82% correlation since March 2009.
Chart: Bloomberg
