Wednesday, July 16, 2008

Consumer Price Index Soars; Inflation Continues To Accelerate

The Consumer Price Index (CPI-U NSA) increased 1% in June for an annualized rate of 12.0%. It is fastest rate in 16 years. All major categories showed increases over the most recent three month period.

The index for energy rose sharply for the second straight month, increasing 6.6% in June following a 4.4% in May. The food index rose 0.8% in June after rising 0.3% in May.

Large increases in the indexes for shelter and for tobacco and smoking products and an upturn in the apparel index also contributed to the larger increase.

The food and beverages index rose 0.7 percent in June. The index for food at home increased 1.0 percent, following a 0.3 percent rise in May. Four of the six major grocery store food group indexes accelerated in June. The index for fruits and vegetables, which was virtually unchanged in May, rose 2.8 percent in June. The index for fresh vegetables rose 6.1 percent in June and the indexes for fresh fruit and for processed fruits and vegetables increased 0.8 percent and 1.2 percent respectively. The index for dairy and related products increased 1.6 percent in June after a 0.1 percent decline in May. The index for meats, poultry fish and eggs rose 0.8 percent in June after a 0.1 percent increase in May. The beef and veal index increased sharply for the second month in a row, up 1.7 percent in June after a 1.5 percent increase in May. The pork index turned up, increasing 0.6 percent in June after declining 0.8 percent the previous month. The index for eggs increased 1.4 percent in June after a 3.8 percent decrease in May and is 23.2 percent higher than in June 2007. The index for nonalcoholic beverages and beverage materials rose 0.2 percent in June after a 0.9 percent decline in May. The two decelerating groups were cereals and bakery products, increasing 0.5 percent in June after a 1.6 percent rise in May, and other food at home, up 0.4 percent in June after a 0.5 percent increase in May. The indexes for food away from home and for alcoholic beverages increased 0.5 and 0.1 percent, respectively. The index for housing rose 0.5 percent in June, the same increase as the previous month. The index for shelter increased 0.3 percent, following a 0.2 percent rise in May and a 0.1 percent increase in April.
Within shelter, the indexes for rent and owners' equivalent rent increased 0.4 and 0.3 percent, respectively. The index for lodging away from home increased 0.7 percent in June. The index for household energy registered its fifth consecutive large increase, increasing 2.1 percent in June. The index for fuel oil rose 10.4 percent for the second consecutive month and is 78.0 percent higher than in June 2007The index for electricity, after increasing for three consecutive months, declined 0.1 percent in June. The index for natural gas increased sharply for the fifth consecutive month, rising 4.9 percent in June and is up 21.5 percent over the last 12 months. The index for household furnishings and operations was virtually unchanged.

The index for apparel rose 0.1 percent in June following a 0.3 percent decline in May.Medical care costs rose 0.2 percent in June, and are 4.0 percent higher than a year ago. The index for medical care commodities-- prescription drugs, nonprescription drugs, and medical supplies-increased 0.1 percent in June after a 0.7percent decline in May. The index for medical care services increased 0.3 percent in June after a 0.5 percent increase in May. The index for recreation was increased 0.1 percent in June, the same percent change as in May. The index for education and communication increased 0.5 percent in June.

The index for other goods and services increased 0.4 percent in June. The index for tobacco and smoking products rose 1.5 percent.

2 comments:

  1. If that evil private corporation, the Federal Reserve, stopped printing funny money worth nothing and not backed by gold or silver (which is unconstitutional), inflation would not occur. But because it is, the American PEOPLE are in effect bailing out the elite of the financial world.... AGAIN.

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  2. The most important thing is to remember that inflation is a POLICY!

    “The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.”

    ~ Vladimir Lenin

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