Most countries don’t include shelter in CPI (housing is a capital asset, and the BLS has to treat shelter as a service provided by the asset). Take out shelter and everything else shows a clear downtrend.

CPI
Source: Bloomberg

Highly significant, I think, is the downtrend in medical services — that was supposed to be a big source of inflation, but the end of the Obamacare bulge in medical services seems to have left it drifting downwards.

Durable goods medical services CPI
Source: Bloomberg

If we have deflation in goods, and some key services show declining inflation, where’s the inflation supposed to come from?

Just sayin’.