Munger's mental models
It's the penultimate video in the series today...tune in here (or click on the image below):
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Melbourne Institute reported an increase of only +0.1 per cent for its inflation gauge in September, after a drop of -0.1 per cent in August.
Over the year, headline inflation remained close to 3-year lows, at 2.6 per cent, well below what the ABS has recently reported.
The pulse for core inflation figure has been very modest over the past 3 months as well.
Justin Fabo of Antipodean Macro Tweeted the below chart showing how on a 3m/3m basis, core inflationary pressures have evaporated (at least, on this gauge).
Looks OK.
