The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5 percent in March on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.7 percent before seasonal adjustment.
So let’s see….. 0.4, 0.4, 0.5 and 0.5 over four months is 0.45 average; compounded over 12 months is 5.54%. Is that more or less than the so-called “stable prices” mandate of The Fed?
Let’s look at the detail table:
Yeah yeah, I know, food and energy price changes are all temporary. Right up until they’re not.
Three-month average change on food at home is .87%. That’s an 11% annualized inflation rate.
Fuel oil and other fuels (household energy) has a three-month run rate of 4.7%. Annualized that’s seventy-four percent (74%).
Gasoline has a three month run rate of 4.6%. Annualized that’s a seventy-two percent (72%) inflation rate.
Food, fuels used at home and gasoline are, combined, about 20% of the “average” consumer’s household budget.
You decide if this is “inconsequential” or even “acceptable” to the “average” consumer in America.
And for those who say “I’m not seeing it”, look at the table here, and tell me what you’re not seeing. Pay particular attention to the six months ending March 2011.