OK, put the trumpet back.

Today's PPI wasn't so nice. But keep the trumpet handy anyhow. The PPI is not a very reliable inflation indicator, and the divergence from the CPI would seem to indicate that labor-intensive content is becoming less expensive, not more expensive. The data are quite consistent with the view that inflationary forces within the US are not a problem. I'm nowhere near ready to concede that the herald-on-call has his job security back.

Blow the trumpet!

Price stability is here.

The faithful knew it would come eventually, but the core inflation number in today's CPI report was a bit of a shock. (As to the day and the hour, only the Father knows...)
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Did I read this right?

From Wednesday’s Wall Street Journal (p. A6, “Labor Costs…”):

The Labor Department reported yesterday that … unit labor costs fell at a 2.4% rate during the second quarter, rather than growing at the originally estimated 5.4% pace.

Miscellaneous Political Thoughts

John Kerry’s “stuck in Iraq” gaffe probably helped the Democrats – by narrowing the field of 2008 contenders.

It’s appropriate that McCain is the perceived Republican front-runner, since he represents probably the only literally red state in the country. (Ever flown over Arizona?)

Obama’s stock has got to be rising now that the “charismatic black guy” formula tested so well in the Massachusetts governor’s race. (Deval Patrick shot way ahead in the primaries and then trounced the current lieutenant governor despite some significant negatives.) But…

Romney is positioning himself as the real conservative in the Presidential race? The current governor of Massachusetts? Yes, I said Massachusetts. Hello?