Consumer Price Index: Gas Down, Food Up, Core Inflation Higher - HuffPo

[WillyT]

Consumer Price Index: Gas Down, Food Up, Core Inflation Higher
Alexander Eichler - HuffPo
Posted: 7/15/11 01:23 PM ET

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NEW YORK -- Gas prices fell in June, but prices for nearly everything else rose, according to figures released Friday by the Bureau of Labor Statistics. Prices for food, shelter, apparel, medical care services and new and used vehicles all increased in June.

The Labor Department report, known as the Consumer Price Index, is one of the most prominent monthly indicators of inflation. It fell by 0.2 percent in June, the first decrease in a year. That decrease was mainly due to a 6.8 percent drop in gas prices. But since gas and food prices are considered volatile, a different measurement -- known as the core index -- omits gas and food fluctuations; it climbed 0.3 percent.

The Labor Department report indicates that overall inflation is up 3.6 percent from a year ago, and the core index is up 1.6 percent. The Associated Press points out that this is slightly below the target rate of the Federal Reserve, which usually hopes to see 2 percent core inflation.

Economists tend to pay more attention to core inflation, and the rise in June's figures slightly exceeded their expectations, according to Reuters: http://www.reuters.com/article/2011/07/15/us-usa-economy-prices-idUSTRE76E2LW20110715

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Link: http://www.huffingtonpost.com/2011/07/15/consumer-price-index-gas-prices-food-prices_n_899919.html?1310750612

:kick:

[William769]

1. Good for June, Bad for July.

Gas prices are on the rise again.

[DJ13]

2. Gas is down! Yes, but its still over $1 higher than a year ago

I keep seeing that gas is lower on the financial news channels, but they arent seeing the price as consumers see it.

Its still too damned high, and it continues being a drag on the consumer.