The Consumer Price Index (CPI), the most closely watched barometer for US inflation, rose 0.1 percent in November 2010 following an increase of 0.2 percent in October — a level most economists had again expected for November. Consumer prices have risen for five straight months.

While energy prices continue to lead the gains, they were tamed as compared to the previous four months. Gasoline prices are an example. They soared 4.6 percent in October, but prices were up just 0.7 percent in November. They are still 7.3 percent higher as compared to a year ago, however.

Food costs ticked slightly higher, climbing 0.2 percent last month versus a previous increase of 0.1 percent.

Stripping out the more volatile food and energy items, the so-called core US inflation rate also rose 0.1 percent. That marked the first increase since July.

"The index for all items less food and energy rose in November after being unchanged the previous three months," the US Bureau of Labor Statistics reported. "Increases in the indexes for shelter and airline fares accounted for most of the rise, while the indexes for new vehicles, used cars and trucks, and household furnishings and operations all declined."

US Inflation rose 1.1 percent in the past year. That was lower than the 1.2 percent 12-month reading reported in October.

"Inflation is a non-threat right now, there’s a lot of slack in the economy," Ryan Sweet, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, who correctly forecast the rise in the CPI, said and was quoted on Bloomberg. "Inflation will remain very subdued and tepid over the next several months."

The core US inflation rate increased on an annual basis to 0.8 percent after a record 0.6 percent rise in October which was the lowest 12-month increase since record-keeping began in 1957. The level continues to remain under the Federal Reserve’s preferred range of 1-2 percent, as noted in the Fed’s monthly FOMC statement released Tuesday.

"Employers remain reluctant to add to payrolls. The housing sector continues to be depressed. Longer-term inflation expectations have remained stable, but measures of underlying inflation have continued to trend downward," said the Federal Open Market Committee (FOMC).

"The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period," the FOMC added.

"The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to support the economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate."

Consumer prices as reported by the US Labor Department follow:

November 2010 Consumer Prices – Gains (%)

The Labor Department’s Consumer Price Index for December 2010 is scheduled for release on January 14, 2011, at 8:30 a.m. (EDT). The CPI data is used as the core engine for the Inflation Calculator.

Prices did rise modestly in October, however, thanks in large part to higher energy costs. But excluding those costs, the annual core US inflation rate increased by the smallest level since the government started tracking the data.

The Consumer Price Index (CPI), the most closely watched indicator of US inflation, edged up 0.2 percent in October after an increase of 0.1 percent in September, the Labor Department said.

Leading gains for a fourth straight month were energy prices, rising 2.6 percent following a 0.7 percent increase in the previous month. Gasoline prices soared 4.6 percent — the fastest pace since July, after a pick-up of 1.6 percent in September.

"As has frequently been the case in recent months, an increase in the energy index was the major factor in the all items seasonally adjusted," the U.S. Bureau of Labor Statistics reported. "The gasoline index rose for the fourth month in a row and accounted for almost 90 percent of the all items increase."

Core prices, which strip out volatile food and energy costs, remained unchanged for a third straight month after falling 0.1 percent in July.

US Inflation advanced 1.2 percent in the past year, a touch higher than the 1.1 percent rise in September. But core inflation on an annual basis climbed just 0.6 percent — the lowest 12-month increase since record-keeping began in 1957. Core inflation rose 0.8 percent over the previous 12 months as reported in September. That was the smallest gain since March 1961. The reading during each of the five months before then had been 0.9 percent, which was the lowest since January 1966. The levels are below the Federal Reserve’s preferred range of 1-2 percent.

"There is no indication of inflation pressure," Chris Low, chief economist at FTN Financial in New York, said and was quoted on Bloomberg. "Given the criticism the Fed has taken recently, especially over the potentially inflationary aspects, it’s very market friendly in that it should help push back against some of that criticism."

Consumer prices as reported by the Labor Department follow:

October 2010 Consumer Prices – Gains (%)

The Labor Department’s Consumer Price Index for November 2010 is scheduled for release on Wednesday, December 15, 2010, at 8:30 a.m. (EDT). The CPI data is used as the core engine for the US Inflation Calculator.

The Consumer Price Index, the most closely watched indicator of inflation, rose 0.1 percent in September after a pick up of 0.3 percent in August, the Labor Department said. Leading gains were energy and food costs, with the latter jumping 0.3 percent to mark its biggest increase since October 2008. Energy prices rose 0.7 percent, which was down from the 2.3 percent increase in August.

Core prices, which excludes out volatile food and energy costs, remained unchanged for a second straight month after falling 0.1 percent in July.

Inflation over the past 12 months climbed 1.1 percent, matching the rate in August. Core inflation on an annual basis, however, rose just 0.8 percent — the lowest 12-month increase since March 1961. The reading during each of the five prior months had been 0.9 percent, which was the lowest since January 1966. And, notably, even then below the Federal Reserve’s preferred range of 1-2 percent.

The smaller core rate adds deepening trepidation for deflation, which is a persistent drop in prices, or the opposite of inflation. The Federal Reserve in September had already noted inflation was below target levels. At a speech in Boston right before the Labor Department’s CPI data was released on Friday, Federal Reserve Chairman Ben Bernanke voiced further concern, making a case to print more money to spur inflation and economic growth.

"Inflation is running at rates that are too low relative to the levels that the Committee judges to be most consistent with the Federal Reserve’s dual mandate in the longer run. In particular, at current rates of inflation, the constraint imposed by the zero lower bound on nominal interest rates is too tight (the short-term real interest rate is too high, given the state of the economy), and the risk of deflation is higher than desirable.

Given that monetary policy works with a lag, the more relevant question is whether this situation is forecast to continue. In light of the recent decline in inflation, the degree of slack in the economy, and the relative stability of inflation expectations, it is reasonable to forecast that underlying inflation — setting aside the inevitable short-run volatility — will be less than the mandate-consistent inflation rate for some time."

Most analysts now expect that the Fed may dump billions of dollars into the economy in what is being dubbed by many as "quantitative easing 2.0."

CPI details as reported by the Labor Department follow:

September 2010 Consumer Price Gains (%)

The Labor Department’s Consumer Price Index for October 2010 is scheduled for release on Wednesday, November 17, 2010, at 8:30 a.m. (EDT). The CPI data is used as the core engine for the US Inflation Calculator.

The Consumer Price Index rose 0.3 percent in August, matching the July increase after a dip of 0.1 percent in June, data from the Labor Department showed.

Leading August increases was a 2.3 percent rise in energy prices, with gasoline costs at the top.

"The energy index rose in August and, as in July, was the primary factor in the seasonally adjusted all items increase," noted the Labor Department CPI August report. "All major energy components posted increases, with the gasoline index being the main factor."

Gasoline prices were up 3.9 percent in August following a 4.6 percent pick up in July. Gasoline declined 4.5 percent in June.

Food prices rose 0.2 percent last month — the biggest increase since April. They had been flat in May and June until falling 0.1 percent in July.

Pulling out volatile food and energy prices, the so called core inflation rate was flat after rising 0.1 percent in July.

"These numbers won’t be a surprise to Fed policy makers," Yelena Shulyatyeva, a U.S. economist at BNP Paribas in New York, who accurately forecast the consumer price figures, said and quoted on Bloomberg. "They need to worry about unemployment and boosting growth and not worry about inflation."

Inflation over the past 12 months rose 1.1 percent after a year-over-year reading of 1.2 percent in July. Core inflation gained 0.9 percent on an annual basis — the same level since April, and the smallest 12-month increase since January 1966.

The annual core rate remains a notch below the Federal Reserve’s target range of 1-2 percent, which increases deflation worries.

"A dip below 1% shows that the economy is just one modest contraction away from dipping into a Japanese like deflation," Steven Ricchiuto, chief economist at Mizuho Securities USA, said and was quoted on MarketWatch.

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, economic turmoil can ensue with production cuts, payroll reductions and deepened unemployment.

CPI details as reported by the Labor Department follow:

August 2010 Consumer Prices

The Consumer Price Index for September 2010 is scheduled to be released on Friday, October 15, 2010, at 8:30 a.m. (EDT). The CPI data is used as the core engine for the US Inflation Calculator.

The cost of energy rose for the first time this year and drove the Consumer Price Index 0.3 percent higher in July.

The energy index posted its first increase since January and accounted for over two thirds of the seasonally adjusted all items increase," noted the Labor Department’s CPI July report. "Both the gasoline and household energy indexes turned up in July after a series of declines. The food index, in contrast, declined in July, largely due to the fourth consecutive decline in the fruits and vegetables index."

The CPI is the most closely watched indicator for inflation. In contrast to July, prices during the months of June, May and April fell 0.1 percent, 0.1 percent and 0.2 percent. Consumer prices rose 0.1 percent in March.

Energy prices were up 2.6 percent after falling 2.9 percent in June. Gasoline was the biggest gainer, jumping 4.6 percent against a 4.5 decline in the prior month. Food prices fell 0.1 percent last month as compared to a flat reading in June.

Stripping away volatile energy and food costs, the so called core inflation rate grew 0.1 percent in July.

"Core inflation remains pretty low," Paul Ashworth, a senior economist at Capital Economics, said and was quoted on CNNMoney.com. "But the near-term risks of it plunging all the way to zero or below have certainly receded."

Other areas of prices increases in July included new and used vehicles, clothing, tobacco, and housing. Prices fell for airfares, medical care and household furniture.

Inflation over the past 12 months rose 1.2 percent after an annual inflation of 1.1 percent reported for June. Core inflation gained 0.9 percent on an annual basis, which was the same level as June, May and April — the smallest 12-month increase since January 1966.

The annual core rate remains a notch below the Federal Reserve’s target range of 1 percent – 2 percent.

July Consumer Price Details

The Consumer Price Index for August 2010 is scheduled to be released on Friday, September 17, 2010, at 8:30 a.m. (EDT). The CPI data is used as the core engine for the U.S. Inflation Calculator.

The Consumer Price Index dropped 0.1% in June, marking the third straight monthly decline since March when prices edged 0.1% higher, according to Labor Department data. The index is the most closely watched indicator for inflation. The decline follows a 0.2% slide in May and a 0.1% dip in April. The last time consumer prices fell for three consecutive months was between October and December 2008.

Sliding energy prices were the biggest contributor, down 2.9% in June, the same decline as in May. Gasoline prices plunged 4.5% to account for "most of the decrease," the Labor Department said.

"The CPI is quite low, it’ll reinforce the thinking within the Fed that they can afford to keep interest rates low," Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto, was noted on Reuters.

Stripping out volatile energy and food prices, the core inflation rate rose 0.2% — the biggest gain since October 2009, after rising 0.1% in May. Core consumer prices were unchanged in April and March.

"Inflation is essentially a non issue right now, and that’s good news for consumers who feel stretched and uncertain. There are some bargains to be had," economist Joel Naroff, president of Naroff Economic Advisors, was quoted by the AP. "Once consumers get more confident and are willing to spend again, they will see that stores are filled with goods at prices they like."

Aside from flat food and falling energy costs, most other areas of the index showed slightly higher prices, calming deflation worries.

"Inflation will be tame because there is so much slack in the economy, but this number should lessen deflation fears somewhat," James O’Sullivan, chief economist at MF Global Ltd. in New York, was quoted on Businessweek.

Deflation is a broad-based decline in consumer 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, economic turmoil can ensue with production cuts, payroll reductions and deepened unemployment.

Inflation over the past 12 months rose 1.1%, following May’s 2.0%, 12-month inflation reading. Core consumer prices increased 0.9% on an annual basis, which was the same level as in May and April — the smallest 12-month increase since January 1966.

The annual core rate remains a notch below the Federal Reserve’s target range of 1% – 2%.

June Consumer Price Details

Rising prices include:

• Used car and truck prices climbed 0.9% in June after rising 0.6% in May. They are up 16.1% over the past
  year.
• Clothing prices jumped 0.8% last month following a more modest increase of 0.2% in May. Prices are still down 0.4% from a year ago, however.
• Shelter costs, which account for about one-third of the CPI, matched May’s 0.1% increase. They were unchanged in April and have declined 0.7% over the past year.
• Natural gas costs climbed 0.6% after declining 1.0% in May.

Declining prices include:

• The energy index fell 2.9% for the second month in a row, after declining 1.4% in April. They have climbed 3.0% over the past 12 months, however.
• Airline fares declined 0.6% in June after rising 1.9% in May and 2.2% in April.
• Gasoline prices dropped 4.5% following a plunge of 5.2% in the prior month. They are 3.0% higher than a year ago.
• Fuel oil prices were down 3.2% after a 1.4% decline in May. They are up 16.6% on the year, however.
• The index for electricity decreased 2.2%. They were down 0.4% during the prior month.
• Fruits and vegetables prices declined 1.3%. They fell 1.1% in May.

Food prices were flat for a second straight month, after rising 0.2% in April. Medical care commodities prices were also flat following a 0.1% increase in May.

The CPI report comes on the heels of the government’s release of the Producer Price Index on Thursday. The PPI is the measure of wholesale inflation, or prices businesses (farms and factories) pay for their goods. Producer prices slid 0.5% in June.

The Consumer Price Index for July 2010 is scheduled to be released on Friday, August 13, 2010, at 8:30 a.m. (EDT).

Consumer prices edged down 0.1% in June, the Labor Department said in its monthly Consumer Price Index report. The CPI is the key reading of inflation at the consumer level. Lower gasoline prices were a major contributing factor.

"Similarly to April and May, a decline in the energy index caused the seasonally adjusted all items decrease in June," the Labor Department stated. "The index for energy decreased 2.9 percent in June, the same decline as in May, with a decline in the gasoline index accounting for most of the decrease. This more than offset an increase in the index for all items less food and energy, while the food index was unchanged for the second month in a row."

Core consumer prices, which exclude the more volatile food and energy costs, rose 0.2% last month.

Inflation over the past 12 months increased 1.1%. The core inflation rate advanced 0.9% over the last year.

Website Site Updates

The buying power of the U.S. dollar can be compared between any dates from 1913 to 2010, as the US Inflation Calculator has been updated with June’s data. The following 2010 inflation rate and data pages were also updated:

• Historic Consumer Index Data
• 2010 Inflation Rates
• Historical Inflation Rates
• Rate of Inflation, Annual Averages

For a more detailed report of consumer prices, read US Annual Inflation at 1.1%.

The Consumer Price Index, the most closely watched indicator for inflation, fell 0.2% in May after edging 0.1 lower in April, the Labor Department said. Flat food costs and lower energy bills led by plunging gasoline prices aided in trimming U.S. consumer prices.

"The weak recovery has its upside, declining energy costs and that is helping take pressure off the cash-strapped consumer," Joel Naroff, president of Naroff Economic Advisors, was quoted by the AP.

Core consumer prices, which exclude volatile food and energy prices, rose 0.1% in May, marking only the second monthly increase this year. The core inflation rate was unchanged in April and March, rose 0.1% in February, and declined 0.1% in January.

"The core inflation rate remains uncomfortably low," Baird said. "The economy may be expanding, but at a pace that isn’t inspiring." Jim Baird, partner and chief investment strategist for Plante Moran Financial Advisors, said in a research note cited by CNNMoney.com. "Muted inflation, and the risk of deflation, seems likely to provide the Fed continued incentive to maintain its accommodative stance."

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, economic turmoil can ensue with production cuts, payroll reductions and deepened unemployment.

Inflation over the past 12 months is up 2.0%, following a 2.2% reading in the 12 months ending in April. Core consumer prices increased 0.9% on an annual basis, which was the same level as April and the smallest 12-month increase since January 1966.

The annual core rate remains a notch below the Federal Reserve’s preferred range of 1%-2%.

May Consumer Price Details

Rising prices include:

• Used car and truck prices were up 0.6% in May after rising 0.2% in April. They are up 16.2% over the past
  year.
• Clothing prices rose 0.2% in May. They were down 0.7% in April.
• Airline fares rose 1.9% in May after increasing 2.2% in April.
• Medical care commodities climbed 0.1% in May. They were up 0.2% in April.
• Shelter costs, which account for about one-third of the CPI, moved up 0.1 in May. They were unchanged in April and have declined 0.7% over the past year.

Declining prices include:

• The energy index fell 2.9% after declining 1.4% in April. However, they have climbed 14.7% over the past 12 months.
• Gasoline prices declined 5.2% in May. They declined 2.4% in April. They are 27.0% higher than a year ago.
• Fuel oil prices fell 1.4% in May after jumping 2.3% in April. They are up 27.1% on the year.
• Natural gas costs were 1.0% lower after declining 4.4%.
• The index for electricity decreased 0.4% after rising 0.7% during the prior month.
• Fruits and vegetables prices declined 1.1%. They were down 0.2% in April.

Food prices were unchanged after rising 0.2% in April.

"We do not have any inflation pressure," Ward McCarthy, chief financial economist at Jefferies & Co. in New York, said today in an interview on Bloomberg Radio. "On the international level, there is tremendous price competition."

The Consumer Price Index, the government’s most closely watched indicator for inflation, edged 0.1% lower in April. The index was helped by mostly subdued energy costs. It was the first decline in the CPI since March 2009, and two notches away from a 0.1% increase most economists were expecting, which was the same level reported in March.

Energy costs dropped 1.4% last month, with gasoline prices leading the declines at minus 2.4%. Food prices were up 0.2%.

Excluding volatile food and energy prices, the so called core inflation rate in April was unchanged for a second straight month.

"Inflation continues to be a non-issue," economist Anika R. Khan of Wells Fargo Investments said in a research note.

Energy prices have soared 18.5% over the last year. That led in driving inflation 2.2% higher over the past 12 months compared to a 2.3% increase during the 12 months ending in March. However, core inflation rate rose a modest 0.9%.

"The continuing stability of the index for all items less food and energy has resulted in an increase over the last 12 months of 0.9 percent, the smallest 12-month increase since January 1966," the Labor Department’s Consumer Price Index Summary report stated.

The 12-month core rate is actually below the Federal Reserve’s comfort range of 1%-2%, which raises deflationary concerns for some.

"The latest CPI data confirms that the Fed has a free hand to concentrate on growth and can extend the ‘extended period’ language for an extended period," Alan Ruskin, strategist at RBS Securities, was quoted on FT.com. "The bad news is that the softness we are seeing in core prices could awaken fears of deflation, notably if we see a renewed downturn."

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.

"The speed of disinflation is now alarmingly rapid, and it adds weight to our long-held view that the U.S. will come perilously close to deflation over the next year or so," Ian Shepherdson, chief U.S. economist for High Frequency Economics wrote and was cited on MarketWatch.

If prices mark sustained deflationary levels that strike below the cost to produce goods and services, economic turmoil can ensue with production cuts, payroll reductions and deepened unemployment.

April Consumer Price Details

Rising prices include:

• Fuel oil prices jumped 2.3% in April after rising 0.7% in March. They are up 28.0% on the year.
• The index for electricity rose 0.7% following a 2.1% increase in the prior month.
• Used car and truck prices advanced 0.2% after a 0.5% increase. They are up 16.6% over the past
  year.
• Food prices are 0.2% higher, matching the prior month’s increase.
• Medical care expenses rose 0.2% in April. They were up 0.3% in March.
• Airline fares increased sharply in April, rising 2.2%.

Declining prices include:

• Gasoline prices ended down 2.4% after falling 0.8% in March. However, they are 38.3% higher than a year ago.
• A 4.4% decline in natural gas more than offset the above stated increases in fuel oil and electricity.
• Fruits and vegetables prices, which rose 3.4% in March, declined 0.2% in April.
• Clothing prices fell 0.7%. They were down 0.4% in March and are 0.9% lower over the past year.

Shelter costs, which account for about one-third of the CPI, were unchanged in April. They declined 0.1% in March. New vehicle prices were also flat.

The CPI report comes on the heels of the government’s release of the Producer Price Index on Tuesday. The PPI is the measure of wholesale inflation, or prices businesses (farms and factories) pay for their goods. Producer prices in April also declined 0.1% after rising 0.7% in March.

Consumer prices edged down 0.1% in April, the Labor Department said Wednesday in its monthly Consumer Price Index report. The CPI is the government’s key inflation barometer, measuring inflation at the consumer level. Many forecasters were expecting a 0.1% increase. Last month’s decline was led by falling energy prices.

"The index for energy decreased 1.4 percent in April and accounted for the seasonally adjusted decline in the all items index. The indexes for gasoline and natural gas both decreased significantly, outweighing increases in the indexes for fuel oil and electricity," the Consumer Price Index Summary report stated.

Core prices, which strips out volatile food and energy items, remained unchanged last month.

Inflation over the past 12 months increased 2.2%. The core inflation rate rose 0.9% over the last year — the smallest annual gain since January 1966.

The U.S. Inflation Calculator is updated, and the buying power of the U.S. dollar can be compared between any dates from 1913 to 2010. Additionally, the following 2010 inflation rate and data pages were also updated:

• Historic CPI Data (1913 – 2010)
• Current Inflation Rates (2000 – 2010)
• Historical Inflation Rates (1914 – 2010)
• Rate of Inflation, Annual Averages

For a more detailed report of consumer prices in April, read U.S. Inflation Rises 2.2% for the Year.