Thursday, February 17, 2011

CPI Up 0.4%; Core Prices Up 0.2%

In January, the Consumer Price Index rose 0.4% for the second straight month. As has been the case in most recent months, the growth was primarily due to rising energy product prices, which rose 2.1%. The core index, which excludes prices of energy and food products, rose by a lesser 0.2%. This is still tame, but higher than is has been recently. Inflation is still modest; however, it is beginning to accelerate somewhat as consumer demand picks up. Businesses are therefore beginning to be able to pass through costs, that are seen in the producer price index, to consumers.

From a year prior, the CPI was 1.7% higher, the highest reading since May 2010. However, the core CPI was up by only 0.9% from a year prior. This is higher than the recent historical low of 0.6%, but us still very modest.

M/M % ChangeJanDecNovOctSepAug
Core CPI0.
Year/ Year % Ch.

Core CPI0.

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