This Great Graphic, constructed on Bloomberg, shows the CRB Index (white line) and the euro (yellow line) over the past six month. It is not meant to imply a causal relationship; as in weaker commodity prices cause the euro to fall. What we are interested in here is the news today that while the preliminary August euro area headline inflation ticked lower, the core rate actually rose. In our discussions of the lowflation in the euro area, we have emphasized a three considerations. First, we argued that the disinflation/deflation in the periphery was the actually a sign that the system (monetary union) monetary union ... (full story)