The Greenspan Retreat! US Core Inflation Checks In At 2.1% YoY, Rent Inflation At 3.4% YoY, Home Price Growth At 5.2% YoY

Today, the US inflation numbers were released and CNBC proclaimed “US core inflation posts biggest gain in nearly 1 1/2 years!” Yes, core inflation (CPI less food and energy) rose 2.1% YoY, hardly distinguishable from other readings since 2000.  But what is noticeable is the “Greenspan Retreat,” the last time core inflation exceeded 5%.

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Of course, housing rents and prices are growing at over twice that of core inflation. The FHFA purchase only index YoY is growing at 5.2% and owner’s equivalent rent is growing at 3.4%.

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Things have never been the same since Fed Chair Alan Greenspan’s tenure. It is off to the races for assets since Greenspan and his merry men.

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 Alan Greenspan cheering 5% core inflation in 1990.

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