The casual investor can be forgiven for claiming ignorance on the topical subject of inflation’s future path. In fact, enlightenment probably eludes the financial sophisticates as well.
Yesterday’s update on consumer prices in December exemplifies the muddle that prevails. Top-line inflation, measured by the consumer price index, pulled back last month by 0.1%, the Bureau of Labor Statistics reports. December’s 2.2% decline in energy prices was the big reason for CPI’s drop, which follows November’s even-larger descent.