Inflation is simply nowhere to be found in the U.S. economy

The latest data from the BLS further confirms the low level of inflation in the U.S.  A number of notable items that make up a large percentage of the CPI actually declined in 2013.  Motor fuel (which has a weight of 5.68 out of 100) in the CPI declined 1.0%, Household furnishings (3.2) fell 2.2%.  Medical equipment, non prescription drug prices, and recreational supplies (like sporting goods).  The average price of DVDs fell nearly 10% last year.

Economist, Justin Wolfers provides a light, but informative closer look at the recent CPI numbers and cookie versus cupcake inflation:

It's striking how much cupcake inflation differs from cookie inflation which differs from donut inflation. pic.twitter.com/fsFT17yMFr

— Justin Wolfers (@JustinWolfers) January 16, 2014