This morning’s inflation numbers were tame as consumer prices were unchanged from the previous month. Inflation was up 3.4% year-over-year, down from 3.5% last month and down from a 3-year high of 3.9% in September. This was due in large part to a 2.4% drop in gas prices.
When stripping out volatile food and energy prices, ‘core’ inflation rose 0.2% last month and 2.2% for the year. This is slightly above the comfort zone for some inflation hawks, especially considering benign wage growth in America.
But with the unemployment rate at 8.6%, which part of the Fed’s dual mandate of “maximum employment and stable prices” seems like the bigger concern right now?
