Tag Archives: CPI

Inflation drops 1.3% in year; most in six decades, consumer prices rise 0.1%

Consumer prices crawled weakly higher in May and for the first time in three months while inflation plunged 1.3% in the past year to mark the largest decline since April 1950, the government reported Wednesday.

The Labor Department said the Consumer Price Index, which measures inflation pressures at the consumer level, inched 0.1% higher in May following a flat reading in April. The increase was less than generally expected, but many analyst are expecting more of the same tame readings in coming months.

"Inflation may be coming, but it’s not here yet and likely won’t be for some time," Richard Moody, chief economist at Forward Capital, was quoted on the AP.

"Inflation is not an issue,"Michael Moran, chief economist at Daiwa Securities America Inc. in New York, was quoted on Bloomberg. "There are huge amounts of slack in the economy and demand is quite soft, so it’s difficult to see how inflation can pick up for the balance of the year."

May’s higher energy costs — most specifically gasoline prices at the pump — were offset by lower food prices. Continue reading Inflation drops 1.3% in year; most in six decades, consumer prices rise 0.1%

US Inflation Calculator Update

U.S. consumer prices inched slightly higher in May and less than expected according to a new report released by the government on Wednesday. The same report revealed year-over-year inflation has fallen at the fastest rate since April 1950.

The Bureau of Labor Statistics Consumer Price Index (CPI) data has the annual US inflation rate at -1.3% compared to April’s 0.7% decline. Cheaper energy over the past year is largely responsible. Continue reading US Inflation Calculator Update

Annual inflation at -0.7%, sharpest drop in consumer prices since 1955

Despite a flat reading for U.S. consumer prices in April, the annual inflation rate fell with the sharpest decline in 54 years, the government reported on Friday.

The Labor Department said the Consumer Price Index (CPI) remained unchanged in April after decreasing 0.1% in March. However, a reduction in the cost of energy over the past 12 months helped drive the annual rate 0.7% lower, marking the second straight monthly dip and the biggest decline since August 1955.

"The era of U.S. consumer price deflation is now upon us as the ongoing economic recession and deteriorating labor market conditions continue to weaken the bargaining power of retailers and laborers alike, thereby quenching the once raging inflationary flames," Millan Mulraine, economics strategist for TD Securities, was quoted on Forbes.com

There is a debate raging between economists on whether a threat to the approaching economy is rising inflation or spiraling, out of control falling prices, known as deflation. Continue reading Annual inflation at -0.7%, sharpest drop in consumer prices since 1955

Inflation calculator, rates update – 5/15

U.S. consumer prices from a year ago have fallen by the biggest amount in more than 50 years, the Bureau of Labor Statistics (BLS) said in a report provided on Friday, May 15. To be more exact, prices had not dropped as fast since August 1955.

The Consumer Price Index (CPI) data has the annual inflation rate at -0.7% compared to the March rate of -0.4%. It was cheaper energy that helped pull down prices. Compared to a year ago, energy prices dropped 25.2%. (While gas prices at the pump have been rising recently, those figures will not be calculated into available data until next month’s report is released.)

On a monthly basis, consumer prices remained unchanged following the 0.1% declined in March and the 0.4% increase in February.

The Inflation Calculator is updated with the newest government information, as are the following pages:

CPI Data from 1913 to 2009

Inflation Rates: 1999-2009

Historical Inflation Rates: 1914-2009

Annual Averages for Rate of Inflation

For an in depth look at April consumer prices, read the article Annual inflation at -0.7%…

March consumer prices drop 0.1%, annual inflation tumbles 0.4%

Pushed down by declining energy prices, U.S. consumer prices dropped in March, and the annual inflation rate dipped for the first time since 1955, the Labor Department reported Wednesday.

The Consumer Price Index (CPI), the most closely watched gauge for inflation, fell 0.1% after increasing 0.4% in February. The decline was unexpected with many analysts forecasting an increase around 0.1%. On an annual basis, inflation was down 0.4%, marking the first decline since August 1955.

While deflation fears were eased with rising prices revealed in the CPI data for February, the latest numbers rekindle notice.

"We’re in a very deep global recession that’s going to hold prices down," Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts, was quoted on Bloomberg. "Deflation is still something that’s a risk, though I don’t think we’ll get into a deflationary spiral."

However, during the last several weeks an outlook for potential stinging inflation has been more of the economic buzz. Continue reading March consumer prices drop 0.1%, annual inflation tumbles 0.4%

Inflation calculator, inflation rates update – 4/15

U.S. consumer prices dropped unexpectedly in March and marked the first annual drop since 1955, according to the latest data from the Bureau of Labor Statistics (BLS) provided on Wednesday, April 15.

The Consumer Price Index (CPI) data has the annual inflation rate at -0.4% compared to the February rate of 0.2%. On a monthly basis, consumer prices fell 0.1 percent, after increasing 0.4 percent in February.

The Inflation Calculator is updated with the newest government information, as are the following pages:

Consumer Price Index Data from 1913 to 2009

Current Inflation Rates: 1999-2009

Historical Inflation Rates: 1914-2009

Annual Averages for Rate of Inflation

For an in depth look at March consumer prices, read Consumer prices drop 0.1%.

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Consumer prices jump 0.4%, annual inflation at 0.2%

Energy prices drove consumer prices higher for a second month in February and at the fastest pace in seven months, the Labor Department said Wednesday. About two-thirds of the increases resulted from a jump in gasoline pump prices. And with that, the annual U.S. inflation rate climbed to 0.2% after the 0% reading reported in January.

The Consumer Price Index (CPI) increased 0.4% in February — the biggest one-month jump since July — and follows the 0.3% rise in January that economists were again expecting. The extra bump helps dispel some fears of chronic price declines, known as deflation, which can have a devastating impact on the economy and employment.

"Worries about deflation can be set aside right now," Bernard Baumohl, managing director of the Economic Outlook Group, was quoted on NYTimes.com. "It’s unlikely we would have seen inflation drop to negative levels for more than a year, given all the fiscal and monetary stimulus that’s in the economy. The math just didn’t work out."

The CPI is the key government gauge for inflation. The core CPI, which excludes volatile food and energy prices, is even more closely watched. It increased by 0.2% for the second month in a row. Continue reading Consumer prices jump 0.4%, annual inflation at 0.2%

Inflation rates and charts – 3/18 update

Consumer prices increased more than the February forecast and to 0.4%, according to the latest data from the Bureau of Labor Statistics (BLS) provided on Wednesday, March 18.

The Consumer Price Index (CPI) data has the annual inflation rate at 0.2% compared to the January rate of 0%, which marked the lowest level since 1955.

The Inflation Calculator is updated with the newest government information, as are the following pages:

Consumer Price Index Data from 1913 to 2009

Current Inflation Rates: 1999-2009

Historical Inflation Rates: 1914-2009

Annual Averages for Rate of Inflation

For an in depth look at February consumer prices, follow Consumer prices jump 0.4%, inflation at 0.2%.

 

Annual inflation rate at 0%, consumer prices rise 0.3% in January

Diving energy prices drove U.S. consumer prices flat over the past 12 months, marking the lowest inflation rate in more than a half a century, the Labor Department reported Friday. However, energy costs have been ticking upward of late and pulled consumer prices back up in January.

"A bit of inflation is encouraging," Mark Zandi, chief economist at Moody’s Economy.com, was quoted on NYTimes.com. "It means businesses aren’t completely giving up and slashing prices. The fact that they can at least hold the line on their price cuts is a positive."

The Consumer Price Index (CPI), the most closely watched gauge for inflation, rose 0.3% in January following an adjusted 0.8% slide in December. The increase was in line with market expectations and the first positive advance in six months. Still, most economists believe prices will again decline.

"We’re in the heart of the recession right now, and with demand falling rapidly, we can expect downward pressure on prices," Chris Rupkey, chief financial economist in New York at Bank of Tokyo-Mitsubishi UFJ Ltd., was quoted on Bloomberg.com. "Everything is heading in the same direction, which is down. Sales are down, profits are down, prices are coming down."

More and more economists are now focusing on the dangers of continual, out of control falling prices, known as deflation. Even the Federal Reserve has discussed the risks. (See Long-term inflation target set… and Deflation a key risk in 2009…) Continue reading Annual inflation rate at 0%, consumer prices rise 0.3% in January

Inflation rates and figures updated for Feb. 2009

Consumer prices were flat over the past 12 months, according to the latest data from the Bureau of Labor Statistics (BLS) provided on Friday, Feb. 20. The annual inflation rate is hovering right at 0%, marking the lowest level since 1955.

The US Inflation Calculator is updated with the newest government information, as are the following pages:

Consumer Price Index Data from 1913 to 2009

Current Inflation Rates: 1999-2009

Historical Inflation Rates: 1914-2009

Annual Averages for Rate of Inflation

For an in depth look at January consumer prices, follow Annual inflation rate at 0%…