{"id":26217,"date":"2017-09-29T08:07:30","date_gmt":"2017-09-29T13:07:30","guid":{"rendered":"http:\/\/olduvai.ca\/?p=26217"},"modified":"2017-09-29T08:07:30","modified_gmt":"2017-09-29T13:07:30","slug":"why-us-price-inflation-remains-relatively-subdued","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=26217","title":{"rendered":"Why US Price Inflation Remains Relatively Subdued?"},"content":{"rendered":"<header class=\"wrapper entry-header page-header\">\n<div class=\"title-with-sep single-title\">\n<h3 class=\"entry-title\"><a href=\"http:\/\/www.cobdencentre.org\/2017\/09\/why-us-price-inflation-remains-relatively-subdued\/\">WHY US PRICE INFLATION REMAINS RELATIVELY SUBDUED?<\/a><\/h3>\n<\/div>\n<\/header>\n<div class=\"entry-media\">The yearly growth rate of the US consumer price index stood at 1.9% in August against 1.7% in July, while the growth rate of the price index less food and energy stood at 1.7% in August against a similar figure in July and 2.3% in August last year.<\/div>\n<div class=\"wrapper\">\n<div class=\"grids\">\n<div class=\"grid-8 column-1\">\n<div class=\"single-box clearfix entry-content\">\n<table width=\"709\">\n<tbody>\n<tr>\n<td width=\"350\">\n<p id=\"KhLwqlD\"><img decoding=\"async\" class=\"alignnone size-full wp-image-21551 \" src=\"http:\/\/www.cobdencentre.org\/wp-content\/uploads\/2017\/09\/img_59c25b7245839.png\" sizes=\"(max-width: 335px) 100vw, 335px\" srcset=\"http:\/\/www.cobdencentre.org\/wp-content\/uploads\/2017\/09\/img_59c25b7245839.png 335w, http:\/\/www.cobdencentre.org\/wp-content\/uploads\/2017\/09\/img_59c25b7245839-300x265.png 300w, http:\/\/www.cobdencentre.org\/wp-content\/uploads\/2017\/09\/img_59c25b7245839-330x292.png 330w\" alt=\"\" \/><\/p>\n<\/td>\n<td width=\"359\">\n<p id=\"SuCoMLf\"><img decoding=\"async\" class=\"alignnone size-full wp-image-21552 \" src=\"http:\/\/www.cobdencentre.org\/wp-content\/uploads\/2017\/09\/img_59c25b77cb29a.png\" sizes=\"(max-width: 334px) 100vw, 334px\" srcset=\"http:\/\/www.cobdencentre.org\/wp-content\/uploads\/2017\/09\/img_59c25b77cb29a.png 334w, http:\/\/www.cobdencentre.org\/wp-content\/uploads\/2017\/09\/img_59c25b77cb29a-300x265.png 300w, http:\/\/www.cobdencentre.org\/wp-content\/uploads\/2017\/09\/img_59c25b77cb29a-330x291.png 330w\" alt=\"\" \/><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Given that the Fed\u2019s target for the core CPI i.e. the CPI less food and energy is 2%, this has \u00a0prompted some experts and Fed policy makers to seek answers as to why price inflation remains subdued in the midst of a declining unemployment rate and prolonged economic expansion. The unemployment rate stood at 4.4% in August against 4.9% in August last year and below the so-called natural, or the equilibrium rate of unemployment of 4.5%.<\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"648\">\n<p id=\"PuAclOl\"><img decoding=\"async\" class=\"alignnone size-full wp-image-21553 \" src=\"http:\/\/www.cobdencentre.org\/wp-content\/uploads\/2017\/09\/img_59c25b83928ab.png\" sizes=\"(max-width: 321px) 100vw, 321px\" srcset=\"http:\/\/www.cobdencentre.org\/wp-content\/uploads\/2017\/09\/img_59c25b83928ab.png 321w, http:\/\/www.cobdencentre.org\/wp-content\/uploads\/2017\/09\/img_59c25b83928ab-300x265.png 300w\" alt=\"\" \/><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>If price inflation hovers too low, it raises the risk of price deflation, which is seen by most experts as bad news. Most experts are of the view that prolonged price inflation below the Fed\u2019s target runs the risk damaging the credibility of the central bank.<\/p>\n<p>We suggest that the main reason for the dilemma as to why the pace of inflation is relatively low in the midst of supposedly strong economic indicators is a misleading definition of what inflation all about.<\/p>\n<p>Contrary to the accepted thinking, the subject matter of inflation is increases in money supply. Note that we do not say that increases in money supply cause inflation. What we are saying that increases in money supply is what inflation is all about.<\/p>\n<p>Contrary to the accepted thinking, the subject matter of inflation is increases in money supply. Note that we do not say that increases in money supply cause inflation. What we are saying that increases in money supply is what inflation is all about.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>WHY US PRICE INFLATION REMAINS RELATIVELY SUBDUED? The yearly growth rate of the US consumer price index stood at 1.9% in August against 1.7% in July, while the growth rate of the price index less food and energy stood at 1.7% in August against a similar figure in July and 2.3% in August last year. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7380,16209,172,202,11498,426,538,954,827],"class_list":["post-26217","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cobden-centre","tag-core-inflation","tag-cpi","tag-deflation","tag-frank-shostak","tag-inflation","tag-money-printing","tag-money-supply","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26217"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26217\/revisions"}],"predecessor-version":[{"id":26218,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26217\/revisions\/26218"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}