The Labor Department on Friday reported 12-month inflation at 1.1 percent, and that core inflation, which exludes volatile food and energy prices, was 0.9 percent — the smallest increase since January 1966. The level, while the same since April, is below the Feds target range of 1-2 percent. Not only did the rate of inflation fall but actual consumer prices declined as the CPI-U index declined from 241.038 to 240.647. Thus monthly inflation was -0.16%. For the year food at home was down -1.6%, energy was down -10.9%, This, then, became the era of “stagflation.” In 1964, when this story began, inflation was 1 percent and unemployment was 5 percent. Ten years later, inflation would be over 12 percent and unemployment was above 7 percent. By the summer of 1980, inflation was near 14.5 percent, and unemployment was over 7.5 percent.