Note how all measures hang close together slightly below the ‘magic’ 2% number, with the exception of the Median CPI which ‘sits’ right on 2%.
Given the other disappointing data released today – unemployment claims and Philly Fed Index of Business Activity – coupled with the astonishingly ‘stupid’ FOMC minutes released yesterday, the markets ‘spooked’:
Minutes from the central bank’s January meetingshowed growing unease over future Fed stimulus. Stocks suffered their worst day in more than three months, gold and oil sold off and the market’s so-called fear gauge—the VIX—jumped 19%, its biggest one-day rise since November 2011.
But looking at the inflation chart above, we see that the Fed has inflation exactly where it wants and that´s all that matters to that august body. The rest is ‘crap’!