Consumer Price Index February 2009

[pinqy]

Source: Bureau of Labor Statistics

On a seasonally adjusted basis, the CPI-U increased 0.4 percent in
February after rising 0.3 percent in January. The energy index rose 3.3
percent in February following a 1.7 percent increase in January as the
gasoline index rose 8.3 percent in February after a 6.0 percent increase
in January. In contrast, the indexes for fuel oil and natural gas both
declined in February. About two-thirds of the all items increase was due
to the rise in the gasoline index. Compared to the July 2008 peak, the
energy index was 29.2 percent lower and the gasoline index was down 44.0
percent. The food index turned down slightly in February, falling 0.1
percent. The food at home index fell 0.4 percent with five of the six
major grocery store food group indexes posting declines in February.

Read more: http://www.bls.gov/news.release/cpi.nr0.htm

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Basically, energy prices went up, food prices went down, housing costs didn't change, so overall a 0.4% increase in prices. Which is good...no real inflation, no deflation...we need some stability with the large increase in Unemployment.

Percentage change in price from Jan-Feb:
All items.......... .4%
Food and beverages -.1%
Housing........... .0%
Apparel........... 1.3%
Transportation.... 1.9%
Medical care...... .3%
Recreation........ .4%
Education and communication.. .2%
Other goods and services....... .2%

Special indexes:
Energy............ 3.3%
Food.............. -.1%
All items less food and energy .2%

[skoalyman]

1. all soon to be rising if the dollar goes the way of the dodo

;-)

[caseymoz]

3. What's worse is if they run the presses at 100 mph, and prices still deflate.

Considering how much money is being created by the Fed now, this might not be good news. Let's see if prices start to decline. If they do, it's the Depression.

[caseymoz]

2. Actually, what we have to worry about most now is deflation.

Massive consumer credit was supporting prices. Now that it's gone and people are spending on a cash basis, prices are in danger of deflating.

And that's worse than inflation, although hyperinflation might follow when or if the economy begins to recover.