The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Monday, September 19, 2011

US core inflation surges

The first chart shows US core inflation (ex food and energy) on a rolling monthly, six month moving average basis. The second chart shows US headline inflation. The red line denotes the US Federal Reserve's target, which is equal to or less than 2% pa. The amazing thing is that core inflation is surging even with very high unemployment and a weak economy. The question is when this starts feeding into US consumer inflation expectations (my guess is it already has).