I still, from the available evidence, see no sign of inflation, All I see, from the available evidence is, at best dis-inflation, or worst, deflation. As David Rosenburg, points out, deflationary signs are increasing.

Deflation Is The Primary Trend
by David Rosenberg - Gluskin Shef

• Credit is contracting.
  
• Wage rates are stagnating.
  
• Money supply growth is vanishing
  
• The U.S.dollar is strong.
  
• Commodities have peaked.
  
• U.S. home prices are rolling over...again.
  
• Lumber prices tumbling (down nearly 17% from April 2010 highs)
  
• Wal-Mart is cutting prices on 10,000 items.
  
• Home Depot just cut prices on flowers, fertilizers, lawn equipment and outdoor furniture.
  
• TacoBell is offering two dollar combo meals.
  
• The April U.S. retail sales report hinted at deflation in groceries, electronics, apparel and sporting goods.