Is Stagflation Around the Corner? Core Inflation Climbs

bls.gov/news.release/cpi.nr0.htm

Yikes, how are the Fed apologists going to deal with this. Their favorite price inflation measure, the core index, is climbing.

Core inflation rose at a 2.4% annual rate in June. The past year, apparel prices rose 3.9%, medical care +4.3% and the food index rose 2.7%.

The energy index fell 1.4%.

What's going on is that the latest slowdown in Bernanke money printing (M2 annualized money growth is around 4%)has pushed oil prices lower. It is also causing a slowdown in the overall economy and stock market. BUT, the previous money printing, which entered the capital goods sector is now moving into the consumer goods sector, that's why you are seeing apparel, medical care and food prices climbing.

If Bernanke keeps slowed money growth into the election, we will be facing stagflation, with a possible stock market crash.