Wednesday, December 16, 2009

CPI Up on Higher Energy Prices

On a seasonally adjusted basis, the Consumer Price Index rose 0.4 percent in November, the U.S. Bureau
of Labor Statistics reported today. Over the last 12 months the index increased 1.8 percent before seasonal adjustment, the first positive 12-month change since February 2009.

The seasonally adjusted increase in the all items index was due to a 4.1 percent increase in the energy index. The index for gasoline rose sharply and the indexes for electricity, fuel oil, and natural gas also increased, creating the fourth consecutive rise in the energy index and the largest increase since August.

Expect a reversal of this, if the current down turn in oil prices continues. Oil prices are down over 10% for the month of December to date.

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