U.S. Jan. CPI up surprising 0.7% on energy costs

[swag]

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BA2CFB58E%2DACDE%2D42A5%2DAB48%2DDD603E0111A3%7D&siteid=mktw&dist=bnb

WASHINGTON (MarketWatch) - U.S. consumer prices increased a larger-than-expected 0.7% in January, led by higher energy, food and housing costs, the Labor Department said Wednesday. The core consumer price index - which excludes food and energy prices - increased 0.2%, as expected. The increases in the seasonally adjusted CPI should keep the Federal Reserve on course to raise its overnight interest rate target to 4.75% in late March. Economists surveyed by MarketWatch had expected the CPI to rise 0.5% in January. After two months of declines, energy prices rose 5% in January. Food prices rose 0.5%. Housing prices increased 0.5%

[AndyA]

1. 2006: The year inflation returns to the U.S. economy

A lot of economists have been predicting the return of inflation, perhaps worse than ever before.

I'm no expert, but it sure seems like it could be in the near future.

[xchrom]

2. i wonder how long it will stay ''inflation''

with the u.s. continuing to print more money in the face of such huge debts and deficits?

what happens if americans close their wallets?

what happens to every one's{that's not a true liberal/progressive} vaunted ''globalism''?

[4dsc]

3. There's no inflation

just high prices!!

[leveymg]

4. I thought energy and food costs had been taken out of CPI.

Or, am I thinking of a different index? (PPI?)

[wishlist]

5. The CPI still includes energy and food, the "Core" is what excludes those

The Bush Admin has tried to emphasize the Core which excludes food and energy but unfortunately for us the CPI (Consumer price index) still includes them. Expect to see higher interest rates continuing and possible big fallback in stock market later this year.

[leveymg]

6. Thanks for clarifying that.

Does someone have a link to graphs that track the CPI and the Core? That might be an interesting comparison.

[hatrack]

7. Look! Surprised economists!!

:eyes:

[bemildred]

8. Yeah, I'm completely dumbfounded.

:puke:

[Radio_Guy]

9. Mark my words

Inflation will hit double digits by the end of 2007 if not sooner.

[NorthernSpy]

10. my, that'll be fun...

$$$:think: