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September 17, 2013

Inflation Tame. Retail Soft. Homebuilders Confident.

September 17, 2013

Inflation Tame. Retail Soft. Homebuilders Confident.

Consumer Price Index (August 2013)

– CPI overall Month/Month +0.1%. Previous was +0.2%

– CPI overall Year/Year +1.5%

– CPI core Month/Month (less food & energy) +0.1%. Previous was +0.2%

– CPI core Year/Year (less food & energy) +1.8%.

Tame inflation means that little pressure is applied to FOMC (which starts a meeting today) to start to taper money supply growth.  The irony remains that the vast majority of the increase in money supply sits idle as excess reserves parked right where they started – at the Fed.  Banks are still wary about lending and many large corporations are sitting on large amounts of cash.

Housing Market Index (September 2013)

– Housing Market Index 58.  Previous revised from 59 to 58.

This is a survey index of homebuilders and their attitude about the housing market. Builders remain confident.  This should translate into increased Housing Starts.

ICSC-Goldman Store Sales (week ended 9/14/2013)

– Store Sales Week/Week -1.6%. Previous was +1.5%

– Store Sales Year/Year +3.2%. Previous was +2.3%

Redbook  (week ended 9/14/2013)

– Store Sales Year/Year +3.4%. Previous was +4.6%.