US consumer price inflation was largely as expected, but the detail shows a narrower number of prices that are contributing to inflation. Excluding shelter the figure remains below 2% inflation, and durable goods had their fifteenth consecutive month of deflation. Economists exclude items from the headline not to fiddle the figures, but to better understand disinflationary forces. Food price inflation slows (though most prices are not falling, and chocolate and vending machine inflation is still high). This may be politically relevant in impacting inflation perceptions.
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