Core Sticky Inflation Collapses
The Atlanta Fed published a sticky and flexible CPI, breaking out the components. Sticky inflation had been moving consistently higher until this year. Now it has collapsed at the fastest rate since the series began at the end of 2001. The financial crisis saw a larger total drop, but even the initial drop in the middle of the recession wasn’t as large as the recent swing. The plunging blue line is the 3-month annualized rate of inflation. The brown line is 12-month annualized flexible CPI, orange is 12-month annualized core CPI.