U.S. Price Inflation Hits 58 Month High

The official year-over-year U.S. price inflation rate for January 2017 reached a new 58-month high of 2.5%!

In August 2016 after the BLS reported an official U.S. price inflation rate for July 2016 of only 0.84%, NIA predicted that it would triple over the following six months to an official price inflation rate for January 2017 of 2.52%. NIA’s forecast was off by only 2 basis points!

NIA's official forecast published on August 24, 2016.

NIA’s official forecast published on August 24, 2016.

In fact, the official U.S. price inflation rate for July 2016 was later revised downward to 0.827%. This means it has increased over the last six months by 167.3 basis points.

NIA in August 2016 had forecast a six month increase in the official price inflation rate of 168 basis points, which was almost perfectly accurate and off by less than 1 basis point!

NIA remains confident in its August 2016 prediction that the official U.S. price inflation rate will explode past 3% for the month of February 2017!

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