Wednesday, June 15, 2011

The BLS on Price Inflation: All of these figures have been rising in recent months

The Bureau of Labor Statistics is out with its latest data on consumer price inflation.

The Consumer Price Index increased 0.2 percent in May on a seasonally adjusted basis. Over the last 12 months, the all items index increased 3.6 percent.This is a dramatic acceleration in the all items index.It was 1.1 percent as recently as November, the 3.6 percent 12-month number in May is thus more than a tripling in the rate of inflation. Not good.

Nixon's core index for all items less food and energy increased 0.3 percent in May, its largest increase since July 2008. The indexes for apparel, shelter, new vehicles, and recreation all contributed to the acceleration, rising more in May than in April.

The food index rose in May as well. The food at home index repeated its April increase of 0.5 percent as four of the six major grocery store food group indexes increased, with the index for meats, poultry, fish, and eggs rising the most. In contrast, the energy index, which had been rising sharply, declined in May. The gasoline index decreased for the first time since last June, although the index for household energy increased.

The energy index has increased 21.5 percent over the last 12 months,the food index has risen 3.5 percent and the index for all items less food and energy has increased 1.5 percent.

The conclusion of the BLS itself: All of these figures have been rising in recent months.


  1. you forgot to add this:

    And the last we heard from Paul Krugman on inflation, his view was:

    There’s really nothing here to shake my view that deflation, not inflation, is the threat.

  2. March: 0.5
    April: 0.4
    May: 0.2

    Looks like a deceleration to me.

  3. I read this nickname somewhere else but I think we (and politicans) should start referring to Ben Bernanke by his appropriate nickname:

    Bubbles Bernanke