https://www.usinflationcalculator.com/interest-rates/us-inflation-remains-subdued-says-fed/1000580/ Easily calculate how the buying power of the U.S. dollar has changed from 1913 to 2026. Get inflation rates and U.S. inflation news. Wed, 18 Nov 2009 19:41:54 +0000 hourly 1 https://wordpress.org/?v=7.0.1 https://www.usinflationcalculator.com/interest-rates/us-inflation-remains-subdued-says-fed/1000580/comment-page-1/#comment-487 Wed, 18 Nov 2009 19:41:54 +0000 http://www.usinflationcalculator.com/?p=580#comment-487 It’s hard to determine what “subdued” means to the Fed. If you use the break-even inflation rate to determine expectation we examine the spread between the ten year treasury and the ten year TIP it was 2.13% as of November 17. That number, however understates inflation by 25 to 50 basis points because Treasurys can trade at special rates while TIPs do not. To estimate current inflation, i.e. first derivative inflation I look at the change in the CPI-U, all-items from its trough in December 208 to present. It changed from 211.577 to 216.385 in ten months to give us an annualized rate of 2.73%. Since the past ten year rate of inflation is 2.87, For the PPI its all-items, current inflation rate at the wholesale level is 3.18%. I can hardly see that inflation is “subdued”.

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