Consumer prices in the US continue to show why the Fed isn't worried about inflation one bit. Headline CPI dropped 0.3% in November, with the annual number at just 1.3%, a sharp decline from November's 1.7% pace. The biggest catalyst for the decline is of course, the plunging price of gasoline, which dropped a whopping 6.6% from last month. Core CPI (minus food and energy) is at a higher 1.7% annual rate, down slightly from November's 1.8%. However, Core CPI is still comfortably below the Fed's target of 2%. The biggest impact on Core inflation came from a 1.2% decline in used vehicles and a 1.1% drop in apparel prices. Once again, inflation concerns can be safely ignored in the US for the foreseeable future. (VIEW LINK)