Core Inflation

The Federal Reserve stated that the April "core inflation" rate increased by 0.2% and about 1.3% on an annual basis. My anecdotal experience seemed to indicate otherwise. The three most important products in my life (and probably in the world); bacon, coffee and gasoline are all costing me significantly more than last year. In the last 12 months, pork products have increased almost 11 percent, gasoline has increased 37 percent, and coffee prices have increased almost 16 percent. How does the Federal Reserve justify the low inflation numbers that it puts forth?

WASHINGTON - Consumer prices rose modestly in January on higher costs for food, gas, rent, and clothing. But economists downplayed the increase, saying inflation will likely ease in the coming months as prices for raw materials level off. Separately, a gauge of future economic activity rose in January for the fourth straight month, adding to evidence that the economy has strengthened in the new year. The consumer price index increased 0.2 percent last month, after a flat reading in December, the Labor Department said yesterday.

WASHINGTON -- Consumer inflation slowed in June, helped by a temporary drop in energy prices. But the improvement was expected to be short-lived with a new crisis in the Middle East pushing crude oil to record highs. The Labor Department reported that its Consumer Price Index rose just 0.2 percent in June, the smallest increase in four months and half of May's 0.4 percent rise. The overall increase was in line with expectations, although core inflation, which excludes energy and food, rose by 0.3 percent in June, higher than the 0.2 percent Wall Street had been expecting.

WASHINGTON - Federal Reserve policy makers may start weighing additional steps to prop up the recovery after growth fell below 1 percent in the first half of this year and economists began cutting second-half growth forecasts. "At a minimum, the FOMC will have a serious debate about the policy options - what they should do, and what they expect to get from it," said Roberto Perli, a former associate director in the Fed's Division of Monetary Affairs, referring to the Federal Open Market Committee.

WASHINGTON -- Consumer prices rose sharply in March, reflecting higher costs for everything from gasoline to clothes and hotel rooms. Perhaps most troubling, core inflation, which does not include energy and food, rose at the fastest pace in a year. The Labor Department reported yesterday that its consumer price index rose by 0.4 percent, up sharply from the modest 0.1 percent gain in February. The extra price pressures were led by a big jump in gasoline prices. Excluding energy and food, core inflation rose by 0.3 percent in March, the biggest gain since a similar...

WASHINGTON -- Consumer spending slowed sharply in May as rising gasoline prices left Americans with less cash for other items, the government reported yesterday. The Commerce Department said that spending rose by just 0.4 percent last month after a 0.7 percent gain in April. Income growth also slowed to an advance of just 0.4 percent last month, reflecting weaker job growth. The report on personal incomes and consumer spending provided further evidence that the economy slowed sharply in the spring as Americans were battered by rising gasoline prices, higher interest rates and a...

WASHINGTON — For all the attention given to almost $4-a-gallon gas, the biggest threat to containing inflation may be the shift away from homeownership, which is pushing up the cost of leases across the nation’s 38 million rented residences. Excluding food and energy, shelter represents about 40 percent of the consumer price index, and accounted for almost one-quarter of the 1.3-percentage-point rise in April. That share has grown as falling home prices shake Americans’ confidence in housing as an investment.

WASHINGTON -- Inflation at the wholesale level increased by the largest amount in nine months in July, reflecting the hit consumers are taking at gas pumps. The Labor Department reported that its Producer Price Index, which measures price pressures before they reach the consumer, jumped by 1 percent in July, the biggest advance since a 1.5 percent increase last October. The report on wholesale prices depicted many of the same price pressures shown in the 0.5 percent increase in consumer prices reported on Tuesday.

WASHINGTON - Consumer prices rose in 2007 at the fastest pace in 17 years as motorists paid a lot more for gasoline and grocery shoppers saw higher food bills. However, falling prices for clothing and new cars offset some of those gains. The Labor Department reported that consumer prices rose 4.1 percent for all of 2007, up sharply from a 2.5 percent increase in 2006. Both energy and food prices jumped by the largest amount since 1990. Prices were also up sharply for healthcare, housing, and education.

WASHINGTON - Wholesale prices fell in August by the largest amount in 10 months, reflecting a plunge in the price of gasoline and other energy products and the fourth straight month of falling food costs. The Labor Department said yesterday that wholesale prices fell by 1.4 percent last month, the best showing since a 1.5 percent fall last October. It was a much bigger decline than the 0.3 percent drop that had been expected and was led by a 6.6 percent decrease in energy costs, the biggest drop in more than four years.

The Federal Reserve stated that the April "core inflation" rate increased by 0.2% and about 1.3% on an annual basis. My anecdotal experience seemed to indicate otherwise. The three most important products in my life (and probably in the world); bacon, coffee and gasoline are all costing me significantly more than last year. In the last 12 months, pork products have increased almost 11 percent, gasoline has increased 37 percent, and coffee prices have increased almost 16 percent. How does the Federal Reserve justify the low inflation numbers that it puts forth?

WASHINGTON — For all the attention given to almost $4-a-gallon gas, the biggest threat to containing inflation may be the shift away from homeownership, which is pushing up the cost of leases across the nation’s 38 million rented residences. Excluding food and energy, shelter represents about 40 percent of the consumer price index, and accounted for almost one-quarter of the 1.3-percentage-point rise in April. That share has grown as falling home prices shake Americans’ confidence in housing as an investment.

WASHINGTON — Consumers paid more in January for everything from food and gas to airline tickets and clothing. The price increases reflect creeping but still-modest inflation. The Consumer Price Index rose 0.4 percent last month, matching December’s increase, the Labor Department said yesterday. Over the past year, the index has risen 1.6 percent. Core prices, which exclude volatile food and energy costs, rose 0.2 percent. That’s the largest monthly increase in more than a year.

Inflation isn’t hitting your wallet hard, but it is lurking in your stock portfolio. Core inflation in the United States is 0.8 percent, well below the 4 percent that starts to worry economists. Though food costs are rising, the overall inflation rate is expected to hold steady due to stagnant real estate prices. So what’s the worry? Economies in places like Brazil, China, and India are growing too fast — at more than 5 percent a year. That is resulting in higher prices for raw materials and consumer...

WASHINGTON — Prices at the wholesale level plunged in February by the largest amount in seven months as a big drop in energy prices offset higher food costs. Yesterday, the Labor Department said wholesale inflation dropped 0.6 percent in February, much more than the 0.2 percent economists had expected. Excluding food and energy, prices edged up 0.1 percent, in line with expectations. The deep recession and weak economic rebound are keeping inflation at bay and giving the Federal Reserve leeway to maintain record low interest rates in an...

WASHINGTON - The spending power of families is being squeezed, government data showed yesterday, highlighting doubts about consumers’ ability to drive the economic rebound. Workers saw their inflation-adjusted weekly wages fall 1.6 percent last year - the sharpest drop since 1990 - even as consumer prices rose only modestly. Slack pay and scarce job growth, along with tight credit and a rising savings rate, are holding back spending. That’s hindering the recovery. For some families, the overall inflation rate last year - 2.7 percent - understates their...

WASHINGTON -- People are feeling the pinch from rising inflation. "It's tough out there for most households," economist Joel Naroff said after the government reported yesterday that consumer prices galloped ahead in January at the fastest pace in four months. The most closely watched inflation barometer, the consumer price index, advanced by 0.7 percent, compared with a 0.1 percent dip in December. The seesaw pattern mostly reflects gyrating energy prices. With overall inflation gaining momentum in January, families' budget were strained.

WASHINGTON -- Consumer prices calmed in November, helped by smaller hikes in energy and food. That means the Federal Reserve probably will continue raising interest rates only gradually to keep inflation under control. The government's closely watched inflation barometer, the consumer price index, rose 0.2 percent last month, compared with a 0.6 percent spike in October, the Labor Department reported yesterday. The jump in October reflected surging energy prices, as crude oil costs hit record highs, and soaring food prices related to supply disruptions from a string of...

WASHINGTON - The budding economic recovery is not getting much help from the home-building industry, which typically creates jobs and drives growth when a recession ends. Uncertainty over whether a federal homebuyer tax credit would be extended weighed down construction last month - a sign of how much the fledgling recovery depends on government support. Home building unexpectedly plunged to its lowest point since April, the Commerce Department said yesterday. The building of homes and apartments fell 10.6 percent in October, to a seasonally adjusted annual rate of...