The latest inflation reading out of the ECRI is consistent with their general economic call – inflation is in a cyclical downtrend. Despite wide ranging fears over the results of QE2, the Fed’s “debt monetization”, “money printing” and government spending, inflation remains muted by just about any metric.
The most recent reading from the ECRI’s Future Inflation gauge showed a slight uptick to 99.5 from 99.2 in August, but inflation pressures are certainly not surging or even rising as many have expected (via the ECRI):
U.S. inflationary pressures were higher in September, as the U.S. future inflation gauge grew to 99.9 from a revised 99.2 in August, originally reported as 99.5, according to data released Friday morning by the Economic Cycle Research Institute.
“Despite its recent uptick, the USFIG is still close to July’s ten-month low. Thus, U.S. inflation pressures remain in a cyclical downtrend,” ECRI Chief Operations Officer Lakshman Achuthan said in a release.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.