[2006alum]

Mick's concerns about deflation seem to be on point -- Key gauge of inflation falls three straight months for the first time in history:

A closely watched gauge of U.S. price changes fell in three consecutive months for the first time in history, the Bureau of Labor Statistics reported Wednesday, raising concerns about a potential deflationary spiral that could hinder the recovery from the pandemic recession.

The Consumer Price Index minus food and energy (core CPI) dropped 0.1 percent in May after declines of 0.4 percent and 0.1 percent in April and March, respectively, according to BLS data released Wednesday. BLS has calculated core CPI since 1957.

Core CPI is a widely monitored measure of price changes that excludes fluctuations in food and energy costs, which are typically more volatile. The historic three-month decline in core CPI has left some economists worried that the coronavirus-driven economic downturn is sapping the steady consumer demand needed to help the economy rebound.

“The May consumer price data continue to underscore that the fallout from the coronavirus is having a large disinflationary effect on prices due to the large demand shock, plunge in oil prices, and still strong dollar,” wrote Oxford Economics economists Gregory Daco and Kathy Bostjancic in a Wednesday research note.

[2006alum]

Mick's concerns about deflation seem to be on point -- Key gauge of inflation falls three straight months for the first time in history:

A closely watched gauge of U.S. price changes fell in three consecutive months for the first time in history, the Bureau of Labor Statistics reported Wednesday, raising concerns about a potential deflationary spiral that could hinder the recovery from the pandemic recession.

The Consumer Price Index minus food and energy (core CPI) dropped 0.1 percent in May after declines of 0.4 percent and 0.1 percent in April and March, respectively, according to BLS data released Wednesday. BLS has calculated core CPI since 1957.

Core CPI is a widely monitored measure of price changes that excludes fluctuations in food and energy costs, which are typically more volatile. The historic three-month decline in core CPI has left some economists worried that the coronavirus-driven economic downturn is sapping the steady consumer demand needed to help the economy rebound.

“The May consumer price data continue to underscore that the fallout from the coronavirus is having a large disinflationary effect on prices due to the large demand shock, plunge in oil prices, and still strong dollar,” wrote Oxford Economics economists Gregory Daco and Kathy Bostjancic in a Wednesday research note.