Tuesday, May 24, 2016

DEFLATION DEAD?

Ding, dong, ding--the big bad boogyman deflation is dead. Says who?  This global strategist from BlackRock, the globe's largest money manager.  If so can anyone spell TIPS?

U.S. deflation is no longer an imminent risk. This week’s chart helps illustrate why.
ISMThe BlackRock Blog
U.S. inflation has been picking up, following a prolonged period of subdued price rises, as evident in the chart above. The U.S. Consumer Price Index (CPI) in April posted its largest increase since February 2013. The inflation upturn is even more pronounced in forward-looking prices-paid surveys, such as the Institute for Supply Management’s Price Index, our analysis suggests. A greater number of purchasing manager survey respondents reported paying more for products and services in March and April, as the chart above shows.

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