The CPA report came and apparently inflation is flat.We are no longer in a recession. Inflation is transitory and it is 100% organic.Inflation occurs because you have a big supply of money or you continue to print money.You're adding more of a supply to something.The reason why they added more of a money supply and they printed money is because they cannot control their budget, they cannot control their spending.Therefore because of all the government spending we have inflation.
But anyways, the CPI report came out today and at the top of the article it says inflation was flat in October from the prior month.Core CPI hits two year low.Well, it hits A 2 year low and that's very interesting because when you read the top bullet points of this CNBC article, the first key point said the consumer price index was flat in October from the previous month, but increased 3.2% from a year ago. And that's why in the title they use the term hits two year low because they're only referring to A 2 year low instead of looking what happened last year.
And last year was immensely important because it increased 3.2% from a year ago.And basically what they're saying is when inflation is flat in October, basically it stayed stagnant and stayed the same from October from the previous month.So back in, what is it, September inflation was a certain amount and in October, the month after that, it stayed flat.So therefore, this is a very, very misleading article.
Excluding volatile food and energy prices, the core CPI rose .2% and 4% against the existing forecast of .3% and 4.1%. The annual rate was the smallest increase since September of 2021.
All humans need food, and we all are consuming energy.And if you're removing these big key factors here, of course it's going to look like inflation is being fixed and it's not going up and everything is OK.Therefore, we are still in a recession.We still have high amounts of inflation.