Friday, August 14, 2009

July CPI Numbers Released

The CPI numbers for July have been released and the year over year continues to show a decrease. For July it was 2.6% for the Los Angeles-Riverside-Orange County MSA that covers Santa Barbara. The month to month numbers from June to July show a slight increase and that continues the trend starting in April.

Investors who have been worried about possible inflation should remain comfortable for the time being. Even though the economy appears to be stabilising there haven't been enough indicators to make the Fed adjust rates and the markets haven't seen a lot of price pressure. This bodes well for the remainder of the year but at some point we will have to see the Fed make the decision to begin raising rates in order to stave off a fast rise in prices as the markets turn around in 2010.

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