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U.S. Cost of Living Gets a Little Cheaper

Originally published by Bloomberg on April 14, 2017 Read the original article.

The April 2017 Elliott Wave Financial Forecast described U.S. inflation as “subdued,” and indeed, the U.S Consumer Price Index declined in March for the first time since February 2016.

An April 14 Bloomberg article provides the major points of the data released by the U.S. Labor Department:

Key Points

  • The consumer-price index decreased 0.3 percent (forecast was unchanged) following a 0.1 percent advance the prior month

  • From a year earlier, prices were up 2.4 percent (forecast was 2.6 percent) after a 2.7 percent gain

  • Excluding food and energy, the so-called core CPI fell 0.1 percent from the prior month, the first decrease since January 2010

  • Core rate was up 2 percent from March 2016

The CPI decline reflects cheaper motor vehicles, wireless phones services and apparel.

The headline CPI has also been negative at times in 2014 and 2015, as you can see in the chart below:

EWI anticipates that a deflationary trend will unfold much more vigorously after the stock market undergoes a significant reversal.

In the meantime, it’s good to educate yourself about deflation so that you are prepared before it strikes.

To start you on your way, we invite you to read the 11-page FREE eBook, “What You Need to Know NOW About Protecting Yourself from Deflation.”

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