The CPI, or consumer price index, fell 0.1% in October. But the Median CPI is a more reliable guide. It fluctuates less than the CPI. It provides a better picture of consumer price changes.
What matters is the trend. The numbers are disputed by a handful of analysts, who say that prices are rising. But these critics never publish the sources of their statistics and their rival methodologies. They do not let statisticians and economists see exactly why consumer prices are rising more rapidly. My advice: ignore all price inflation statistics that are not accompanied by publicly available methodologies.
The Median CPI is accompanied by public explanations. It is published monthly by the Federal Reserve Bank of Cleveland.
The trend of the Median CPI is toward lower price inflation. It is not yet price deflation. But prices are barely rising.
This leaves the Federal Open Market Committee lots of room to continue its quantitative easing policy of buying half a trillion dollars a year of long-term Treasury bonds and half a trillion worth of Freddie/Fannie bonds. The FOMC can continue to subsidize the housing market without fear of political repercussions.