CRB Index & CPI

The CPI for April was flat, but the Fed’s favorite measure, core CPI, was up more than expected. Year over year core increases were 1.9%, the most since Nov ‘08. Considering the deflationary environment we have been in since early 2008, this was surprising.

With vehicle sales down 30-40%, I am at a loss to explain the upside surprise in vehicle prices.

Regardless, perhaps this chart, via Ron Griess of The Chart Store, helps to explain the CPI gains . . .

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CRB Futures Index
(does not include today’s data)
5-8-09-daily-crb

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