11. April 2011
Economy watchers were alarmed by a 3.2% increase in the nation's CPI. The cause? A 33% increase in gas and oil prices. This, in turn, increased fertilizer and transportation costs, which drove food prices 3.9% higher year-over-year. The Fed wasn't concerned by these volatile commodities prices. It watches the core inflation rate, which was only 1.3% -- well below the Fed's target of 2%.
12. March 2011
Commodities traders drove oil prices above $100 a barrel. This caused inflation to rise 2.7%, particularly in food and gas prices. Where is the regulation? As it turns out, Dodd-Frank reform act. required studies, which the CFTC is duly performing (to its credit). Prices rose while incomes did not.
13. February 2011
Health care costs were up 3% fom the prior year. Food prices were 2.3% higher, thanks to a 20% increase in gas and oil prices. Overall, the February CPI was 2.1% higher than last year.
14. January 2011
Prices are 1.6% higher than last year, thanks to a 13.4% spike in gas and oil prices, which drove transportation costs up 3.4%. This, in turn, partially caused a 2.1% jump in food prices.
15. December 2010
The nation's CPI is only 1.5% higher than last year, although food at home is 1.7% higher than a year ago. Higher food prices are due to a 13.8% spike in gas and oil prices, which drove transportation costs up 2.8%.
16. November 2010
Overall, prices were only 1.1% higher than last year, although food at home was 1.7% higher than a year ago. Higher food prices were due to a 7.7% increase in gas and oil prices, which drove transportation costs up 2.9%. Furthermore, bad weather in August reduced crop sizes.
17. October 2010
Prices for food in general were 1.4% higher in October than last year, after declining for about a year. That's because gas and oil prices went up 9.5%. Overall, prices were up 1.2%, while core inflation was only .6% - much lower than the 2% unofficial target inflation rate set by the Federal Reserve.
18. September 2010
Gas and oil prices went up 5%, driving food prices up 1.4%, after declining for about a year. Overall, prices had gone up 1.1% since last year.
19. August 2010
Prices in August rose .3%, mostly due to a 3.8% increase in gas and oil prices. Over the last year, prices had only gone up 1.1%. Low prices are a good thing, right? Not necessarily. A healthy, growing economy will generate a core inflation rate of around 2%. Core inflation measures prices without volatile food and energy costs, which is why the Fed watches it more than the overall inflation index.
20. July 2010
Prices in July were up 1.2% over last year, driven by an 8% increase in gas and oil prices and a 3.2% increase in health care costs. The latest Consumer Price Index (CPI) also showed that prices edged up .3% since June 2010.
