The fact the news media is talking

about inflation means it's on the way

U.S. consumer prices flat,

inflation pressures muted

Fri Aug 14, 2009 10:11am EDT
WASHINGTON (Reuters) -

U.S. consumer prices were flat in July versus June, but fell over the past 12 months by the most since 1950, according to government data that suggested benign inflation pressure even amid signs the recession may be winding down.
The Labor Department said on Friday its Consumer Price Index was unchanged after rising 0.7 percent in June, in line with market forecasts for a flat reading.
Gasoline prices fell 0.8 percent after jumping 17.3 percent the previous month, helping to keep overall prices contained. The food index declined 0.3 percent, the biggest fall since May 2002, after being flat in June, while prices for apparel and new vehicles rose in July.
Compared to the same period last year, consumer prices fell 2.1 percent, the largest decline since January 1950, reflecting the huge drop in oil prices since last year's peak.
U.S. government bond prices extended gains on the data, while the dollar deepened losses against the yen. ( read more here )