Here Comes the Heat….

by Karl Denninger Market-Ticker.org

CPI up 0.6%, which is 7.4% annualized.

The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4 percent in September on a seasonally adjusted basis, after increasing 0.6 percent in August, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.7 percent before seasonal adjustment.

“Core”, less food and energy, has not come down from last month at all. Of course nobody buys food and energy, do they? Naw…

The basic problem is that having bottomed in June at 3%, inflation by the government’s read has gone back up to close to 4% and is not declining. This is a problem for those who think rates are headed back down — oh no they aren’t.