US consumer prices tick up just 0.1 percent

[DonViejo]

Source: ASSOCIATED PRESS

WASHINGTON (AP) — Cheaper energy kept U.S. consumer prices in check last month, despite a big rise in the cost of food, the latest sign that inflation is tame.

The consumer price index rose 0.1 percent in February, matching January’s increase, the Labor Department said Tuesday. In the past 12 months, prices have risen just 1.1 percent, down from 1.6 percent in January and the smallest yearly gain in five months.

Excluding the volatile food and energy categories, core prices rose 0.1 percent last month and 1.6 percent in the past year.

Energy prices fell 0.5 percent because lower gasoline and electricity costs offset higher prices for natural gas and heating oil. Clothes and used cars were also cheaper last month.

-snip-

Read more: http://www.salon.com/2014/03/18/us_consumer_prices_tick_up_just_0_1_percent/

[rurallib]

1. exclude that volitile energy sector

where gas went up 50 cents a gallon in a week.
It has no effect on households

[awoke_in_2003]

6. The highest natural gas bill

I have ever had was $120- until last month. Last months's bill was $220. Nope, there ain't any inflation

[mathematic]

9. Inflation was higher without the energy sector than with it

It says so right in the OP.

[JayhawkSD]

2. There's a couple of things wrong with that release

"Cheaper energy kept U.S. consumer prices in check last month, despite a big rise in the cost of food, the latest sign that inflation is tame."

Both energy and food are excluded from the consumer price index, so "cheaper energy kept U.S. consumer prices in check" is a bogus statement. Cheaper energy had no effect on the CPI.

Equally bogus is the implication that cheaper offset anything as in "despite a big rise in the cost of food," since food is also not included in the CPI. So without the bogus offset of cheaper energy the food prices would not have increased the CPI as their statement implies.

Also note thet they are talking about a "per unit cost" here, not about what an average household would spend in a month. Think about last February. Gasoline went down per gallon, while natural gas and heating oil went up. Given sub-zero temperatures, how much gasoline did you use, and how much natural gas and/or heating oil did you use? Aren't you glad inflation was so low and that your home heating bill went down so nicely?

[mathematic]

8. Incorrect. Food and energy are about 25% of the CPI

http://www.bls.gov/news.release/cpi.t01.htm

The CPI without food and energy is often reported along side the overall CPI because it is less volatile.

[earthside]

3. Stagnant and/or falling wages ....

.... are just as much a part of the inflation picture as consumer prices.

Plus, there are government taxes and fees that go up that are not in this calculation.

The average American knows and experiences the consequences of higher prices and lower wages every single day.

Which is why polls show that most folks say that we are still in a recession.

[OnlinePoker]

7. Last month's BLS jobs report said wages went up 2.2% year over year.

Here's a link to the actual wage table from BLS. Some sectors are down over the year (the most vulnerable in Retail, Education, and Hospitality), but most are up.

http://www.bls.gov/news.release/empsit.t19.htm

[durablend]

4. LOL...they're funny

Energy prices fell 0.5 percent because lower gasoline and electricity costs offset higher prices for natural gas and heating oil.

Gas has been going up here weekly and those people that got whomped with $1000+ electric bills would beg to differ with the other part.

[durablend]

5. More BS from the report

While shoppers may prefer lower prices, economists warn that super-low inflation can slow economic growth.

Again, the prices on a Rolls Royce and a 50 foot cabin cruiser remaining tame don't affect "real people".

It encourages consumers to postpone purchases and can also make inflation-adjusted interest rates higher, potentially discouraging borrowing.

Yeah, much better to punish those people that can least afford to live as it is. And who the hell do they think they are living within their means?!?