Inflation’s holding (or “being held”) just above the zero line, over the last few weeks. So much for my prediction of negative rates! Interesting to see how the graph looks.
The “bulge” was from rising commodity prices last year, and while they’re not quite that much this year, the wholesale price index has gone up neatly (some of it is food prices, and crude has also shot to $60+, but I suspect we will follow prices up all that much).
The next few weeks should reveal more. Will we see a drop? Will the lack of demand show up in this or other indices? (Unfortunately none of them have real estate prices or rentals, otherwise we’d have seen deflation already)
