CPI Rises Only .01% : Energy Down 6.4% and Its Possible Implications for the Economy

The Consumer Price Index (CPI) is seen as an important marker for future inflation because it shows what we as consumers are likely to pay in terms of increase in costs. The cooling is considered in general a good thing, especially if we avoid a recession, and if we see economic increase at the end of 2023/24 (I don't know if it will happen but maybe. Much now depends on world activity, conflict, supply lines, and much more. When I made the projection in 2020 ish during Covid we are now in a new world when compared to then but many of the mechanics might stay the same. It doesn't matter if that projection is right because its too far out but I'm now curious what will happen. I'm wrong a lot and I'm right a lot. Throw the dice! ). 

All items are around 5% (still historically high), food is still way up around 8.5%, energy is down -6.4%. The energy declines might be important. If they are seasonal based because of increased weather it would be understandable. If they are more or less based in increased supply from alternative sources and reduced demand it could me the conflict in Russia had a long term muted effect. 

You can learn more about the BLS CPI. The World Economic Forum also has information on CPI at WEF CPI

Below you will see the energy decrease

You can also read this study, 'Energy efficiency and economy-wide rebound effects: A review of the evidence and its implications' It would seem that lower energy could positively influence economic growth this year and if we are efficient with that energy and have multiple sources of that energy it could reduce transactional costs at a root level (At least according to my little theory). In my mind, cheap energy is great but clean and renewable energy is the best of both scenarios. There is some research out there that indicates that if we solve the energy problem with fusion we could not only travel in space at some point with unlimited energy but perhaps stop fossil fuel dependency while improving economic output (i.e. cheap energy as a component of a new platform that comes with the digital era. A co contributing factor along with our infrastructure. See Cross Structure Synergy.).