Fuel Helps Push Consumer Prices Up in 2004

[wicket]

http://story.news.yahoo.com/news?tmpl=story2&u=/ap/20050119/ap_on_bi_go_ec_fi/economy

Consumer prices jumped 3.3 percent last year as the biggest surge in fuel bills in 14 years pushed up inflation at the fastest pace since 2000, the government reported Wednesday.

But in a sign that some relief may be on the way, retail prices fell by 0.1 percent in December, driven lower by the largest one-month drop in energy costs since July.

The Labor Department (news - web sites) said the 3.3 percent increase last year in its Consumer Price Index (news - web sites), the most closely watched barometer of inflation, was the biggest annual jump since a 3.4 percent rise in 2000. In 2003, consumer prices had risen just 1.9 percent.

The acceleration in price pressures last year was led by a 16.6 percent jump in energy costs, the biggest annual gain in 14 years — since an 18.1 percent surge in fuel bills in 1990, when supply disruptions related to Iraq (news - web sites)'s invasion of Kuwait roiled world oil markets.

[sendero]

1. Even notice...

... that when inflation numbers look bad, you always hear two numbers, the overall rate and then the "core" rate with the "volatile food and energy prices" factored out.

But when the number is good, you only hear the total number, the "core" rate is not worthy of mention.

[durablend]

2. Fuel prices are WAY up this month...

Guess that optimism is going to be short-term

(then again, they'll probably cover that up anyway)

[spinbaby]

3. Inflation on Fastest Pace Since 2000

The headline got a mite more spectacular later in the day.

http://story.news.yahoo.com/news?tmpl=story&ncid=&e=7&u=/ap/20050119/ap_on_bi_go_ec_fi/economy_22