Inflation Is Tamed?

For some bizarre reason, the market acted as though yesterday’s inflation report was positive.  I don’t understand this.  Headline inflation according to the Consumer Price Index, all items, was .4% month-over-month, an increase from the rate of growth the prior month.  The year-over-year number was 2.9%.  “Core” inflation, which takes out items with volatile prices, but which also happen to be necessities like food and energy, rose at a slightly lower rate.  Medical care services, which I watch closely because it is calculated in a weird way, rose 3.4% year-over-year, and I believe it should be growing rapidly in early 2025.   I simply do not believe the extremely low level of price growth for physician and hospital services that BLS is calculating.  And to call this report a sign that inflation is easing is just wrong.  It is still high enough to be very noticeable to consumers and given the amount of money that is being pumped into the economy due to the debt crisis, higher inflation is inevitable.   (BLS Release)