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THE BEST NEWS OF THE DAY

CPI was flat today, although you’re unlikely to hear much about it with all the bank news this morning (in case you missed it – our largest banks are basically insolvent).  In my opinion, this is the most positive news of the day.  I think the vast majority of price deflation has taken place.  We should begin to see flat inflation figures and very modest positive inflation by year end.  And that’s a positive development.