Inflation Isn't Dead Yet
Don't be deceived by Alan Greenspan's unconcerned tone and by the reassuring CPI numbers: This beast knows how to play possum
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By Amey Stone
Consumer price inflation, now running at a modest 1.7% annual rate, isn't anything to lose sleep over. But it isn't worth celebrating either. Nonetheless, investors cheered on June 15 when May's core consumer price index came in at a tame 0.2%, a bit lower than feared. The Dow Jones industrial average climbed 46 points, to 10,380, and the yield on the 10-year Treasury bond, which falls as bond prices rise, dropped to 4.68%, from 4.88% the day earlier.