In general, inflation has been relatively subdued in recent months and this release follows that general trend. There are several possible explanations for this. One possible answer comes from the fact that the housing market has been unusually strong of late. Purchasing a new home often involves the purchase of many durable goods such as washers, dryers, TVs, and the like. Another contributing factor has been the rise in energy prices.
Energy is what economists call relatively inelastic.
This means that when OPEC slashes its output, American wallets will feel slimmer. There now appears to be a strong rebounding in this leading index. Hopefully this index will prove to be reliable and the economy will in fact come to recover in the next few months. The Shortrun Fed Watch section contains the most recent beige books as well as speeches by Fed Governors with a brief description of each speech and in some cases a Shortrunner's opinion on its significance. Show off your economic knowledge and breadth of learning by reviewing an economic text.