The Consumer Price Index for All Urban Consumers (Yes it is true)

[lovuian]

The Consumer Price Index for All Urban Consumers (CPI-U) increased
0.2 percent in January on a seasonally adjusted basis, the U.S.
Bureau of Labor Statistics reported today. Over the last 12 months,
the all items index increased 2.9 percent before seasonal adjustment.

The indexes for food, energy, and all items less food and energy all
rose in January, each increasing 0.2 percent. Within the food group,
the index for food away from home increased while the index for food
at home was unchanged; within the energy group the gasoline index
increased while the index for household energy declined.

Within all items less food and energy, the apparel index rose
sharply, and the indexes for shelter, recreation, medical care, and
tobacco increased as well.
http://www.bls.gov/news.release/cpi.nr0.htm

Inflation cometh


The index for energy has risen 6.1 percent over the last year and the food index 4.4 percent; both figures are slight declines from last month. The index for all items less food and energy has risen 2.3 percent, its largest 12-month increase since September 2008.

Unadjusted, prices are up 2.9%, but food is up 4.4%, gasoline is up 9.7%, other energy costs are up 10.0% and clothing is upo 4.7%.

[lovuian]

1. Oh I forgot to add this one Energy costs are up 10%

Gasoline up 9.7 %

this is really the driving force behind high prices

Peak Oil is here folks

[NNN0LHI]

2. Cost of energy prices are going up but I have been using a lot less energy

Cost us $40 dollars to heat this house and a two-car attached garage in January.

That is usually about $160 dollars.

Our gasoline usage is way down too. No more unnecessary trips and I always kill two birds with one stone when going out somewhere. No more single issue trips for us. We plan these things out now.

Don

[lovuian]

3. We are doing the same and yet Food prices

have gone up and I know DUers were discussing this a couple of days ago on the high
food prices

they were right
it wasn't their imagination

[banned from Kos]

4. Its only inflation when all prices rise

How does gas keep going up while still well off 2008 highs?

[lovuian]

5. I'm not understanding your point?

In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time

A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time.

it was measured over a year and prices went up

[banned from Kos]

6. The puny little inflation we have now is healthy. Why?

Its not reflected in commodities.

Coal peaked at $140/ton in 2008. Now its about $70.

Crude oil peaked at $147/bbl in 2008. Now its $102. NatGAs is 1/4 old highs.

Corn, rice, wheat all peaked in 2008 as well. The delta in each is going into earnings. Then competition follows. Inflation in general is very contained. Real estate and wages are still moribund. Capacity is under utilized. This is why the market keeps going up. Low interest rates, low inflation, high profit.

[cthulu2016]

7. Are we concerned about 2.9%?

Under current circumstances the Fed target should be at least 3%. In fact, if they set a target rate of 4% that would be great news.

A return to slight inflation is very, very welcome news. We have been struggling for almost four years to create inflation this high.

This is desired and nessecary and overall quite good economic news.

It is, of course, unfortunate that the greater rises are concentrated in necessities but when coming out of a deflationary environment it makes sense that the commodities that gain traction are necessities since they are, by their nature, least affected by our very low level of demand.