U.S. Inflation Rises at 2.1% Annual Rate, Consumer Prices Flat in February
The American cost of living climbed from a year ago due to higher energy bills, but those same energy costs fell in February to help keep consumer prices in check for the month, the Labor Department reported Thursday.
The Consumer Price Index (CPI), which is the government’s most closely watched barometer for measuring inflation at the consumer level, was flat in February, breaking away from five straight months of 0.2% increases. The month marks the first time since March 2009 when consumer prices did not climb, indicating tame inflation and reinforcing the Fed’s recent statement saying that inflation would remain subdued for "some time."
"Inflation is certainly no imminent threat to the U.S. economy," David Resler, chief economist at Nomura Securities International Inc. in New York, said on Bloomberg. Resler forecasted that prices would remain unchanged "It ties in with the Fed’s statement," he added.
The energy pricing index fell 0.5% in February after rising 2.8% during the prior month. Food prices rose a modest 0.1%. Read more
2010 Inflation Rates, Data and Calculator Updates
The cost of living for Americans remained unchanged in February as falling energy prices offset other price increases, the Labor Department reported Thursday.
While consumer prices were flat in February, the annual inflation rate climbed 2.1%, according to the Consumer Price Index, or CPI data. The CPI is the government’s key inflation barometer, measuring inflation at the consumer level.
By comparison, prices advanced 0.2% back in January — for the fifth straight time, and 12-month inflation ending for the month was at 2.6%. Read more
US Producer Prices Decline 0.6% in February, 12-Month Wholesale Inflation Rises 4.4%
US producer prices declined more than expected in February, according to the latest figures provided in a government report released Wednesday.
The Labor Department’s Producer Price Index (PPI) dropped 0.6 in February — the biggest fall since July, and after soaring 1.4% in January. The PPI measures inflationary pressures before they reach the consumer or, more technically, the wholesale price of goods leaving the factory gate. Many analysts were forecasting a monthly decrease ranging from 0.2% to 0.3%.
"Disinflation is going to be with us for a while," Julia Coronado, a senior U.S. economist at BNP Paribas in New York, said in a Bloomberg Radio interview. "That’s going to allow the Fed to stay on hold for a lot longer than the market is expecting."
Deflation is a persistent decrease in general prices, or the opposite of inflation. Falling prices may seem like good news for consumers, but only to a certain point. If prices mark sustained deflationary levels that strike below the cost to produce goods and services, further economic turmoil can ensue with production cuts, payroll reductions and deepening unemployment. Read more
Annual U.S. Inflation Rises 2.6%, Consumer Prices Edge 0.2% Higher in January
The cost of living in the U.S. rose less than expected in January, as Americans paid less for new cars, clothes, hotels, homes and other shelter-related costs, the government reported Friday.
However, the price of energy continues to be a burden with increases during the month and year that drove inflation higher over the past 12 months, according to the Labor Department.
The Consumer Price Index (CPI), which is the government’s most closely watched barometer for measuring inflation at the consumer level, rose 0.2% in January for the fifth consecutive month. The figure is lower than the 0.3% increase most analysts were forecasting.
"Despite the extraordinary fiscal and monetary stimulus injected into the economy, many prices are still stagnant or declining," Dan Greenhaus, chief economic strategist for Miller Tabak, wrote in a research note on Friday that was quoted on NYTimes.com. Adding, "The pricing situation still remains fragile."
2010 US Inflation Calculator and Rate Updates
The cost of living for Americans increased in January, but at a slower pace than most economists were forecasting.
Consumer prices edged up 0.2% for the month and annual inflation rose 2.6%, according to the Consumer Price Index, or CPI, data released by the Labor Department on Friday. The same December readings came in at 0.2% (revised upward from 0.1%) and 2.7%, respectively.
The CPI is the government’s key inflation barometer, measuring inflation at the consumer level. January’s increase marks the fifth straight month of 0.2% gains. Most analysts were expecting a rise of 0.3%. Either inflation level is tame. Read more
US Producer Prices Surge 1.4% in January, Annual Wholesale Inflation Rises to 4.6%
Producer prices in the U.S. jumped more than expected in January and annual wholesale inflation climbed the most since October 2008, the government reported on Thursday.
The Labor Department’s Producer Price Index (PPI), which measures inflation pressures before they reach the consumer, soared 1.4% in January after a 0.4% increase in December. Forecasts for the month ranged from 0.7% to 0.9%.
Driving prices higher were increased energy and good costs, with respective gains of 5.1% and 1.7%. The same readings in December came in at 0.7% and 0.6%. The biggest contributors to wholesale energy prices were a 11.5% advance in gasoline and 16.2% rise in home heating oil — the latter helped by colder than normal weather. Food prices were up 0.4% compared to 1.3% in December. Read more
Annual U.S. Inflation Rises 2.7%, December Inflation Rate Climbs 0.1%
Consumer prices shifted slightly higher in December but the annual inflation rate jumped due to rising energy costs, the Labor Department reported Friday.
US consumer prices increased modestly at 0.1% last month, which was down from a 0.4% increase in November and marked the lowest reading since July. Most forecasters were expecting a 0.2% increase.
"Consumer pricing pressures remain very subdued," Russell Price, a senior economist at Ameriprise Financial Inc. in Detroit, was quoted on Bloomberg. "It gives the Fed further leeway to continue keeping rates where they are well through 2010."
The government’s Consumer Price Index, which measures inflation pressures at the consumer level, rose 2.7% on an annual basis in 2009 — the biggest gain since 2007. By comparison, American’s paid just 0.1% more for goods and services in 2008. The contrasting difference was primarily driven by higher energy prices, with gasoline up 53.5% in 2009 after declining 43.1% in 2008. Read more
US Inflation Rates, Historical Information and Calculator Updates
The cost of living increased in December but prices actually rose less than expected, the latest data from the government reveals.
American consumer prices inched 0.1% higher last month. That drove the inflation rate up 2.7% in 2009 from a year ago, according to the Consumer Price Index, or CPI data provided by the Labor Department on Friday. The CPI is the government’s key inflation barometer.
The modest increase in December, which was 0.1% lower than many forecasts, compares to a 0.4% pickup in November. The aforementioned 2.7% annual inflation rate compares to 0.1% inflation in 2008. Higher gasoline prices account for much of the difference.
"The larger increase was primarily due to the energy index, which rose 18.2 percent during 2009 after falling 21.3 percent in 2008. The energy upturn was caused by the gasoline index, which rose 53.5 percent in 2009 after declining 43.1 percent in 2008," the Labor Department’s report states.
Excluding volatile food and energy costs, the core CPI rose 1.8% in the past 12 months versus the 1.7% rise reported in the prior month. 2009’s increase matched 2008. The core CPI in December was also up 0.1% Read more
U.S. Inflation Jumps 1.8% in Past 12 Months, Consumer Prices Up 0.4% in November
US inflation over the past 12 months returned to positive territory for the first time since February, according to government data released Wednesday.
The latest Labor Department monthly report reveals that the Consumer Price Index, which measures inflation pressures at the consumer level, increased 1.8% from a year ago, and rose 0.4% in November.
The November reading was inline with most analysts’ expectations, and follows a 0.3% gain in October. The cost of living for Americans increased due to several categories, but was led by 4.1% jump in energy prices — the fourth straight monthly increase. Oil prices shot up 9%. Gasoline prices notably rose as well, soaring 6.4% in November after an increase of 1.6% in the month prior.
The so-called core consumer index that excludes the more volatile food and energy items was unchanged in November, marking the first month in ten without an increase. Analysts were expecting a 0.1% increase. The core CPI rose 0.2% in October. Read more
Inflation Calculator, American Inflation Rates and CPI Data Updates
Americans paid more for energy and medical care in November, bringing the cost of living up from a month earlier, according to a government report released on Wednesday.
The Labor Department’s Consumer Price Index, or "CPI" for short, climbed 0.4% last month following a 0.3% pick up in October. The increase is inline with most expectations. Leading consumer prices higher were energy costs which jumped 4.1%. Energy prices have risen for four consecutive months. Food prices rose only slightly.
Removing food and energy costs, the core CPI remained unchanged after a gain of 0.2% in October. The flat reading is a stark contrast to the 10 straight prior increases. Many economists were forecasting a rise of 0.1%.
On an annual basis, inflation rose by 1.8% as compared to the 0.2% drop in the prior 12 months reported in October. Read more