Disinflation in the COVID-19 Era
The idea that prices of most goods and services will fall in 2020 has been widely accepted, so investors mostly don’t care about the details. Still, the inflation numbers have changed dramatically since the year began and are worth mentioning. On Wednesday, both the consumer price index (CPI) and core CPI for the month of May fell by -0.1%. It was the first time in 60+ years of series history that core consumer prices had declined over three consecutive months.