The indicator fell into Disinflation last week and as a result of today's buoyancy in commodities, and 10-year yields recovering, the indicator moved back into Neutral territory, albeit by a smidge. This is nothing to get excited about for inflation believers as inflation remains world's away. Keystone views this as simply a temporary recovery and the indicator should re-signal Disinflation in the days ahead, then ultimately work down towards Deflation which will trigger Chairman Bernnake to act with QE3.
CRB/10-yr Price = 309.78/101.297 = 3.06
Over 4 = Inflation
Between 3 and 4 = Neutral territory; inflationists and deflationists fight it out
Between 2.9 and 3.0 = Disinflation
Below 2.9 = Deflation
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