Core CPI is not rising everywhere and when it has it's been of a very low base. In the EZ it has gone from 0.6% to 1% which is like a grading difference between very weak to weak. In the US it's gone from mid 1's to 2 . In japan core inflation is 0% and in China's it's half what it use to be at 1.5%. The historical trend of core CPI is much higher than these figures.
On a separate point, I get sick and tired of hearing the perpetual bulls saying the doomsdayers have been bleating on about a market collapse since 2009 and using this as a point to prove them being wrong. It's quiet possible to be right yet wrong at the same time because popular belief or general consensus is against you. Copernicus and Darwin held their theories private for decades before releasing them to the general public. In fact , Copernicus fearing persecution waited until his deathbed before sending out manuscript. So for decades there were earth was the centre of the universe believers and creationists walking around basking in the glory of a belief system that was simply wrong.
I would say right now the market is in denial stage. The general theory is about Central Bank's and there are enough people ( not just the same few ) of importance now saying that Central Bank's can't create meaningful/organic inflation and growth which will sustain the global economy. Some are believing and selling others are buying the dips. If you're a volatility trader this is the best time you can get possibly get because the market will change it's mind on a daily or even hourly basis.
Anyway, that's enough of my silly morning rant. I wonder how well our market will hold up today. CBA results out tomorrow.
