Monthly inflation numbers are noisy. The numbers the last 2 years have been especially noisy. That's why I cited the 12-month numbers in my post above - http://iwt.mikevital....iwt?postid=44358 . 2.1% CPI inflation over 12 months isn't anything to be upset about - especially with very high unemployment.

But if you want to worry about that, and cherry-pick monthly numbers to support your case, feel free.

Consumers don't pay PPI increases, businesses do. Personal Consumption Expenditures are 70% of GDP - http://www.bea.gov/s.../0311_gdpecon.pdf PCE includes services. PCE and CPI use slightly different formulas, so their changes aren't identical. http://www.bea.gov/s...r/1107_cpipce.pdf

HTH. I think I'm done.

Cheers,
Scott.