Initial Claims and Inflation

I wanted to remark on this morning’s economic reports.

The initial jobless claims report fell to 709,000. We’re finally not that far from the highest readings of the financial crisis. Last week’s report was revised up to 757,000. This report is another eight-month low. We’re moving in the right direction, but very slowly.

The CPI report showed that inflation was unchanged last month. The core rate was flat as well. Over the past year, inflation is up 1.2% and core inflation is up 1.6%.

Here’s a chart of the year-over-change change in consumer prices (black) and core prices (red). Notice how much more stable the red line is which is why it’s easier to track.

Posted by on November 12th, 2020 at 2:54 pm


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