Gubermint Inflation Stats: How Rising Fuel Prices Lowered The Q1 GDP Deflator & Goosed Growth!

The average deflator over the last two years is 2.05%, and it is running slightly higher at 2.125% over the last four quarters. Our expectation for an average or above average deflator in Q1 2019 were in large part driven by oil prices which rose by 32% over the entire first quarter……(the BEA)  reported that fuel prices fell on average by 7.8% during the quarter.