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Economists Don't Believe the Headline

Article by Four Percent June 14, 2012 //   1 minute read

Spencer Jakab, Wall Street Journal Wall Street is dissing disinflation. With all due respect, that may be a mistake. Defined as a decelerating rate of price increases, as opposed to price drops, the current dip in headline inflation is seen as a temporary giveback from the commodity-price spike earlier this year. A consensus of economists sees growth in May producer- and consumer-price indexes, due Wednesday and Thursday, falling to 1.1% and 2.0% year on year, respectively, from 1.9% and 2.3% in April. That would be the slowest pace since October 2009 for producer prices and January 2011 for consumer prices. Read More (Subscription Required)

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