[Toddsterpatriot]

Ultimately inflation is the same thing as currency devaluation, therefore one would look to something like the dollar index (a measure of the dollar against major currencies) as an early indicator.

So the current strength of the dollar means what?

[Moonman62]

It means the yield curve is flat eleven months after GWB said "Greenspan knows what to do" when he was asked about the weakness of the dollar. The dollar is still much weaker than when GWB took office. Even so, we should see a relaxation in the inflationary pressures we've been seeing the past few years.