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Getting out of control: another key CORE number absolutely tumbled.

Eurodollar University

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The Correlation Between Core Producer Prices and Consumer Prices

Central bankers hiked rates in July 2011 based on not just core consumer prices, but there are theories of inflation which don't incorporate either market signals or what we're seeing in producer prices. For over a year, there was a major divergence between what producer prices were suggesting and what core consumer prices were suggesting. After July of 2012, when Mario Draghi made his promise, the recession, particularly in Europe, finally forced core consumer prices to go lower.

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