Saturday, December 17, 2005

Chart of Interest

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BOTTOM LINE: The Consumer Price Index fell at the greatest rate in over 50 years during November. This decline illustrates the extreme effect commodity prices have recently had on various measures of inflation. I continue to believe that the US has experienced a mild bout of cyclical inflation within a secular disinflationary environment. I expect the longer-term trend of disinflation to reassert itself in 2006.

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