The US Bureau of Labor Statistics today published the second set of inflationary data in as many days, this time covering the consumer price index (CPI), as compared with yesterday’s producer price index (PPI). The contradictory data from the CPI readings this afternoon is in line with similar figures regarding PPI and Retail Sales from yesterday.
Basically, the report shows the value of the more volatile price instruments undergoing a downshift while the core figures which exclude these volatile items reveals modest growth. The Core PPI and CPI numbers both revealed modest increases of 0.3%, which has helped solidify the commentary by Fed Chairman Bernanke that another round of easing may get delayed as more data rolls in.