Initial Claims; CPI July

Summary: Headline reads Initial claims drop 10K. Under the sheets,

as employment worsens, continuing claims balloned 114K and 40% over last year, to a new 5 year high.

Headline reads CPI up, but core as expected. Under the sheets,

the largest increase since 1991, as the officially advertised 3 month inflation rate, is now in DOUBLE DIGITS.

Initial Claims 08/09 -10K at 450K vs 460K Full Report

Inside the number: prior revised up +5K. 4 week MA +19.5K at 440.5K; Continuing unemployment +114K at 3.417M; 4 week MA +75.25K at 3.273M.

See the list of states +1K for the bleed from the housing sector.

CPI Jul +0.8% vs +1.1% Full Report

Inside the number: Energy +4%; Indexes for five of the six major grocery store food groups rose at least 1%. Yoy CPI +5.6% the largest increase since Jan 1991.

Less Food & Energy life in the Fed's facilitie for the sensory impaired, life is good: Core CPI Jul +0.3% vs +0.3%; Outside in the real world, it sucks.

Table B: CPI-W annual rate for all items last 3 months: +11.9%; Energy +81.3%; Transportation +36.7%; Food +8.6%.

Meanwhile, that meaningless core reading: +3.2%. So we know, just add 9 to 10% to the core for the real number.

Again, we gently repeat one of our mantras: Anyone claiming or believing that inflation is tame, or under double digits, is either a paid liar, a fool or both.

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