CLIENT LOGIN
-
-
CIO INSIGHTS
-
BACK TO CIO INSIGHTS
BACK TO ARTICLES & INSIGHTS HOME
-
-
-
-
Investment Insights are written by
Angeles' CIO Michael Rosen
Michael has more than 30 years experience as an institutional portfolio manager, investment strategist, trader and academic.
im电竞app官网
Published: 02-26-2015The Consumer Price Index dropped 0.7% in January, bringing the year-over-year change to negative 0.1%. With the exception of the 2008 financial meltdown, the January decline brought the index to its first negative annual change since 1949 (see Chart below).
Energy is behind this. Energy prices fell 9.7% in January, and are down 19.6% over the last 12 months. Ex-energy, CPI is up 1.9% from a year ago.
This is not deflation, which is caused by tight money, but rather a one-off drop in the price of an important commodity.
The headline number also obscures encouraging data on income. Real (after-inflation) incomes rose for the fourth straight month, are up 2.4% from a year ago, and have accelerated to a 4.9% annualized pace over the past six months.
The decline in energy prices is a transfer of wealth from producers to consumers. It is not deflation, or anything other than that. Full stop.
PRINT THIS ARTICLE-
I'm Not Dead! 10-24-2014
A great line from a great Monty Python movie, and another crisp cover from The Economist: ...
READ MORE -
Wages 05-01-2015
They're going up. Total salaries and benefits moved up 4.4% in 2014, rising to 53.6% of GDP, still below historic ...
READ MORE -
No Panic (Yet) 08-13-2015
Earlier this week, China devalued its currency 1.9% against the US dollar. On one level, this is not a big deal. China's ...
READ MORE
-
-
SUBSCRIBE TO ANGELES' INSIGHTS
Get the latest investment information and stay on top of market trends.
-
SANTA MONICA
555 SANTA MONICA BLVD
SUITE 650
SANTA MONICA, CA 90401
310.393.0000
GET DIRECTIONS -
CONTACT US
NEW YORK
333 PARK AVENUE
SUITE 2209
NEW YORK, NY 10152
212.451.9999
GET DIRECTIONS -
CHICAGO
444 D. MICHIGAN AVE
SUITE S1700
CHICAGO, IL 60611
312.212.6666
GET DIRECTIONS