You can-na fool me — there ain’t-a no Phillipsy Curve
With deflation in goods and some key services, where would inflation come from?
Most countries don’t include shelter in CPI (housing is a capital asset, and the BLS has to treat shelter as a service provided by the asset). Take out shelter and everything else shows a clear downtrend.
Highly significant, I think, is the downtrend in medical services — that was supposed to be a big source of inflation, but the end of the Obamacare bulge in medical services seems to have left it drifting downwards.
If we have deflation in goods, and some key services show declining inflation, where’s the inflation supposed to come from?