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SPEAKER 1
Welcome to the All Facts Matter podcast, where we push back against corporate media propaganda with facts, evidence, and data. I'm Peter, the author of All Facts Matter. Let's begin. For last month's consumer price index summary, along with the producer price index summary, I was talking about inflation getting hotter.
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I explored all the facets that were pushing prices up and were likely to continue to push prices up. Naturally, this month I am talking about inflation getting cooler. And yet, that is what the data has presented for February. Inflation eased noticeably in this Consumer Price Index report, rising just 2.8% year-on-year after posting 3% year-on-year in January.
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That cooler inflation was then backed up by easing in factory-gate inflation, which pulled back to 3.2% year-on-year. What happened to reverse the consumer price inflation signals so dramatically? The short answer, Donald Trump reclaimed the Oval Office. Which is not to say that Donald Trump has a magic wand capable of cooling consumer price inflation in an instant.

Cooling Inflation Shows Trump’s Disruptive Impact (Video)

Predictions Are Futile In An Era Of Change

Economically as well as geopolitically, Donald Trump has torn up the playbook. He is in every aspect an agent of change, and even a chaotic agent of change. That makes prediction and prognostication an exercise in futility.

It is quite possible that President Trump’s trade war threats will cause higher prices at least for a time here in the US. If those threats go off the rails they may result in an extended period of inflation. If they work perfectly they may result in bringing consumer price inflation down below 2% for every good and service imaginable.

We are not going to know which of these possibilities will become realities until they do.

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