The January reprieve is now official. Deciding if it’s also enduring is the question. For now, beggars can’t be choosy. Inflation at this juncture, however spare, is good news.
Wholesale and consumer prices rose last month, as we expected they would. The deflation war isn’t over, but there’s reason to think that it can be won. Even so, winning will take time and setbacks are likely.
For now, let’s recognize that consumer prices rose last month, just as they did for wholesale prices. The reason, as we explained yesterday for the pop in producer prices, was the rebound in energy.