Keystone's Inflation Deflation Indicator Signals DISINFLATION

Bingo. The CRB is printing 309.92 and the 10-year price is 103.328.

309.92/103.328 = 2.9994

Over 4 = Inflation
Between 3 and 4 = Neutral; inflationists and deflationists fight it out
Between 2.9 and 3.0 = Disinflation
Under 2.9 = Deflation

The indicator has dropped under 3.0, albeit by a single hair, but it is under nonetheless, indicating that the U.S. has now fallen into DISINFLATION. The comment by Chairman Bernanke all year long about 'transitory' inflation was correct. Reference the previous posts over the last couple days if you are not up to speed with Keystone's Inflation Deflation Indicator.

Note Added 1:46 PM: Latest prints are 307.27/103.47 = 2.97, firmly in the DISINFLATION camp. At 2:21 PM, 307.00/103.69 = 2.96, a new low again, almost halfway to the Deflation level at 2.90 already.

Note Added 9/23/11 at 6: 30 AM EST: Current markets show a 10-year yield at 1.73%. The ratio is 307.27/103.55 = 2.97. The U.S., as measured by Keystone's metrics, is now in DISINFLATION.

Note Added 9/23/11 at 11:02 AM EST: Current prints are 303.44/103.031 = 2.945, Disinflation, and the indicator is now closer to Deflation at 2.9 rather than the Neutral territory at 3.0.

Note Added 9/23/11 at 1:07 PM EST: Current prints are 303.39/103.156 = 2.94. The path towards deflation continues.