by David Brady, Sprott Money:

In a podcast with Tom Bodrovics at Palisades Radio this week, I discussed among other things the pending change in the calculation of the CPI going forward. The plan is to reduce the “Owner’s Equivalent Rent”, or “OER”, which reduces the overall CPI going forward. It comes on top of favourable year-over-year comparisons that should lead to lower CPIs ahead. This is important because reducing inflation is suddenly the primary focus of the Fed and the White House after the Fed previously called it “transitory”. The Fed is still planning on getting the CPI down to 2% on a year-over-year basis, and now it looks like they could get there—or at least a lot closer to it—sooner rather than later. The headline December number was 5.7% and it’s expected to fall to 5.5% in January.