February inflation report: Looks like deflation, acts like inflation

The official inflation report from the Bureau of Labor Statistics says that inflation fell 0.2% in February, but that decline was determined by a whopping 13% drop in gasoline prices, which began rising in March. Every other price category showed an increase, and core inflation is up 2.3% over the last 12 months. That’s not deflation; it’s moderate inflation.

I posted an analysis at SeekingAlpha.com, including an update on the inflation-based variable rate on US Savings I Bonds. Hope you’ll click through and read it:

February’s Inflation Report: ‘Headline’ Deflation Hides Creeping Inflation; What It Means For I Bonds

I also updated  my ‘Tracking Inflation and I Bonds‘ page with the new numbers.

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One Response to February inflation report: Looks like deflation, acts like inflation

  1. John Rathbun says:

    I think this administration is doing its best to underestimate inflation for political reasons. Anybody who goes grocery shopping knows it’s a lie. My grocery bill is up 31% since 2000 with no other explanation. This is about three times the official BLS inflation rate. Sooner or later, the pigeons will come home to roost. I suspect a lot of Democrats are hoping that will be after November.

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