Inflation rises at fastest rate since October 2008

[Pale Blue Dot]

Source: CNN Money

NEW YORK (CNNMoney) -- Inflation accelerated to its fastest annual pace in two and a half years in April, as surging gas prices continued to hit American consumers.

The Consumer Price Index, the government's key inflation measure, rose 3.2% over the last 12 months ended April 30, according to Friday's report from the Labor Department. It was the biggest 12-month jump since October 2008.

More than half of the increase was due to rising energy prices, the government said.

Meanwhile, so-called core-CPI, which strips out volatile food and energy prices and is considered a better long-term predictor of inflation, rose 1.3% from a year ago.

Read more: http://money.cnn.com/2011/05/13/news/economy/cpi_inflation/

[rfranklin]

1. As long as you don't eat or drive or heat your home you are A-okay!

How fucking stupid can they get?

[makhno]

3. Blind rather than stupid?

Sometimes I wonder whether people designing these indices ever do any shopping themselves or if they just send interns to the store and then have them file reimbursement paperwork. Then again, when one has a certain amount of disposable income, one tends not to notice price increases so much.

I know my experience is statistically meaningless, but there is not a single person I know who has not noticed a sharp increase in the prices of essential (food and energy) goods over the past few years.

[Javaman]

7. Never mind. misread your reply. :) nt

[makhno]

10. No worries :)

:toast:

[pinqy]

9. The increase is in the indexes

Food at home has increased 17% in the last five years, 4% since Apr 2010
Household energy up 10% since 5 years ago, 2% since last year
Gasoline....38.8% higher than 5 years ago, 84% higher than 2 years ago.


I think the issue is that most people don't know how to read or find the right index.

[makhno]

11. Thank you

Seriously, thanks for pointing this out. Got to go to the source.

These are some pretty dramatic numbers, though. No wonder they tend to be rolled up into more palatable buckets of some sort.

Wish the media did what you just did and pointed out the specifics.

[Doctor_J]

2. But the IPad II is twice as fast as the IPad I!!11!!ones!!

For the same price!!!!

I have an underemployed neighbor who buys the exact same groceries and same amount of gasoline each week, and she says the increase over the last few months is putting her under water.

Guillotines, anyone?

[stockholmer]

4. here is a nasty chart (8.8% annualized over last 3 months)

http://www.zerohedge.com/article/not-inflation-you-are-looking


Because one chart is worth a thousand Fed Chairman press conferences...






Dollar crisis/huge inflation is probably on the way, especially if the Fed launches QE3 and doesn't raise interest rates.

But, if they do not do QE3, the economy tanks further, plus raising interest rates just several hundred basis points will add hundreds upon hundreds of billions to the deficit in terms of debt service.

classic catch-22

[Javaman]

8. Looks like a freaking 8.0 earthquake during morons* reign of terror. nt

[TacticalPeek]

5. Meanwhile, so-called core-CPI ... considered a better long-term predictor of inflation, rose 1.3%

It appears someone wants scare headlines, but the "better long-term predictor" can be found 4 paragraphs down: 1.3% - not deflation but not much better.

Vigilantes have no shame.

[makhno]

6. Sorry

But I got to eat today. Can't easily factor the "long-term" on a (diminishing) paycheck to paycheck basis.

[Odin2005]

12. "core CPI" = "ignore NECESSITIES like FOOD".

[Auntie Bush]

13. I wonder if this will mean we'll get a raise in SS in January.

Mine has gone down every year...because we have no inflation, but mine is $27.00 less just this year. :(

[alp227]

14. today's PBS Newshour did an indepth piece on tracking inflation rate

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x583539

And at the same time of course wages aren't keeping up, aren't they?