Deutsche Bank: No Excuses For Anemic Inflation

Inflation, sovereign debt and currency values have historically been correlated to various degrees. When they fall out of their correlation patterns, mean reversion has typically occurred. Given these as precepts, Deutsche Bank Foreign Exchange Macro Strategist Alan Ruskin looks at recent CPI data on consmuer spending and connects what are at times noncorrelated dots.

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"Excuses don't count" for CPI data

For the last five months, the Consumer Price Index (CPI) has been rather anemic. In July CPI data came in at .1 after posting losses of -.1 and -.3 in May and March respectively. For Ruskin, he sees a pattern that appears like childish behavior.

“Like a poorly behaved kid every month there...