The monthly Consumer Price Index that came out this morning was the lowest in a year at a (rounded +3.0%.  That’s 0.1% lower than expectations and 0.3% lower than last month’s 3.3%.  Lower prices equal lower inflation which leads to lower interest rates. You’ll see from the graph below that we’re getting set up to have the lowest rates since late March,

As you’ve seen from your own income the last two years (or so I’ve heard), low rates play a huge part in the velocity of money in the sale of big ticket items–like houses and groceries and car insurance.  Tomorrow I’ll pontificate about the ticking time bomb of our domestic propensity to overspend using credit.