Core Inflation

Interesting read from the editorial page of IBD. Year-over-year, the core rate remains tame.

clipped from www.ibdeditorials.com If we're reading him right, Bernanke is now figuring that weak growth or outright recession is a greater risk than inflation. But that actually makes the Fed's case. If oil continues to retreat — and President Bush convinces the Democratic-led Congress to drill for more crude — our current inflationary spurt will be over. As the chart shows, overall inflation has indeed risen above 4% — a scary level if allowed to persist. But inflation minus energy and food — core inflation — is a tame 2.3%. This is not a problem.