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CPI reveals that except for everything going up in price, there is no inflation

Posted By Barry Ritholtz On February 22, 2006 @ 9:07 am In Commodities,Consumer Spending,Inflation | Comments Disabled

Original:

"Consumer prices surged last month on higher energy and food costs but underlying price pressures remained largely contained."

Translation:

"Consumer prices surged last month."

Here’s the breakdown:

"In January, energy prices rose 5%, after falling 2.1% in December. The advance was led by a 5.5% surge in electricity costs, the largest increase on record for that component. Gasoline prices last month rose by 6.4% and natural-gas prices increased 1.7%. Year over year, all energy prices advanced 24.8%.

Food prices were up 0.5% due to sharply higher fruit and vegetable prices. Medical-care prices increased 0.1%. Housing prices, which account for 40% of the index, rose 0.5%. Prices for new vehicles increased 0.6%. Clothing prices increased 0.3%, while education and communication rose 0.4%."

So to reiterate, except for everything going up in price, there is no inflation . . .

>

Source:
Consumer Prices Jumped 0.7% [1]
As Food, Energy Costs Climbed
WSJ, February 22, 2006 8:49 a.m.
http://online.wsj.com/article/SB114061330703180066.html


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URL to article: http://www.ritholtz.com/blog/2006/02/cpi-reveals-that-except-for-everything-going-up-in-price-there-is-no-inflation/

URLs in this post:

[1] Consumer Prices Jumped 0.7%: http://online.wsj.com/article/SB114061330703180066.html

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