2007-12-07 Infation 1yr Expectations

Inflation 1 year

December 3.5%
November 3.4%
Δ Percent 2.94%

2007-12-07-inflation-5yr-expectations.gif

Inflation 5 year

December 3.1%
November 2.9%
Δ Percent 6.90%

This is most troubling for the fed. The absolute limits of easing for ‘market functioning’ have to be the point of letting inflation expectations elevate.

Right now, the fed is likely seeing the balance of risks tilting towards inflation.


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