Summary
- July inflation came in under the consensus estimate of 0.2%.
- Gasoline prices fell sharply, breaking a four-month string of increases.
- Non-seasonally adjusted inflation fell 0.16% for the month, which will lower TIPS principal balances in September.
Read my full analysis on SeekingAlpha.com
Also, I’ve updated my Tracking Inflation and I Bonds page with the new numbers.
And here are new TIPS inflation indexes for September.
This discussion raises in my mind what is the optimal amount of inflation bonds to hold in a diversified bond…