Consumer prices excluding food and energy fall

[Newsjock]

Source: Associated Press

Consumer prices rose less than expected in January while prices excluding food and energy actually fell, something that hasn't happened in more than a quarter-century.

The Labor Department said Friday that consumer prices edged up 0.2 percent in January while prices excluding food and energy slipped 0.1 percent. That was the first monthly decline since December 1982.

The benign inflation news gives the Federal Reserve more time to keep interest rates at record-low levels to shore up the economy and should ease worries in financial markets that a Fed rate hike is more imminent.

... The 0.1 percent fall in core inflation, which excludes energy and food, was the first monthly decrease in core inflation since a similar 0.1 percent fall in December 1982. This drop reflected falling prices for shelter, new cars and airline fares.

Read more: http://finance.yahoo.com/news/Consumer-prices-excluding-apf-1789869500.html?x=0&sec=topStories&pos=2&asset=&ccode=

[CatholicEdHead]

1. About those energy costs

(from the article above)
The 0.2 percent rise in overall prices reflected a 2.8 percent jump in energy costs, the biggest one-month gain since August. Energy prices were driven up by a 4.4 percent rise in gasoline pump prices and a 3.5 percent increase in the cost of natural gas.

Yep, gas and hence food will stay expensive. This metric does not say anything meaningful.

[WhiteTara]

2. that's because all we can buy

is food and fuel. The rest is on sale to tempt anyone with a dollar left over.

edited to add...food prices are up here. fuel is also slightly down (3cents)

[blueworld]

23. +100 n/t

[msongs]

3. food prices are not falling in southern california, sorry to say nt

[Jim__]

6. Core inflation excludes food prices - n/t

[izquierdista]

24. They are falling where I am

And when my garden gets growing this spring, they will fall a LOT more.

[dmallind]

4. Quantitative easing always drives hyperinflation! OK..... NT

[Highway61]

5. Falling?

Where? Not here I tell ya.

[KeepItReal]

7. Wiki says this "Core Inflation" measurement has been used by Fed only since Feb 2000

Before 2000, the Consumer Price Index was used. The CPI is still used for Social Security indexing.

http://en.wikipedia.org/wiki/Core_inflation

[mbperrin]

9. Fraudulent numbers used to make things look rosy??? Who'da guessed?

Lessee, what lying no good fuckers were in office in 2000 when this fraud began?


Oh, if only I could remember...

[KeepItReal]

10. Appears to be one "Alan Greenspan" was chairman of the Federal Reserve

...when that little switcheroo was made.

He of "Adjustable Rate Mortgages Are Fine, Go Get 'Em!" fame.

[mbperrin]

16. Well, thank gawd these folks in now will instantly end that fraud!!!

Right?

[Jackpine Radical]

17. Hint:

{{clinton}}

[Psephos]

20. Just a thought, but * wasn't sworn in until January 2001. n/t

[mbperrin]

22. And thank goodness he ended it immediately! Wait...

nt

[Selatius]

26. Bill Clinton. GWB didn't take the oath of office until January 2001. nt

[PSPS]

8. It's amusing to see the fraud behind the numbers in the headline

Usually, the headline is written "Lowest Inflation ever!!11!! Prices are falling!!11!!! Time to BUY!11!!" And then, buried in the article, is the disclaimer that the "positive" news is based on this index which "excludes things that increased in price."

[peace13]

11. Food, energy and insurance......need I say more?

If I took those three items out of my budget quite frankly, there is not much left.

[hayu_lol]

12. The depression is still alive and well...

Have one med that I have to take that doubled in price: about $60 in January, $131 in Feb. Guess they didn't include meds.

[Heywood J]

15. About $5? (nt)

[kestrel91316]

13. LOLOLOLOLOL - food and energy are all I have money for.

Everything else is optional right now (not counting rent).

Why don't they bother tracking the cost of food with inflation, since it is such a large part of what the poor spend? Same for energy?

[endless october]

14. there is no way to measure without including food and energy.

everyone buys food and energy. any figure that excludes them is a bullshit figure.

[harun]

21. Consumer price index for things people don't consume.

[Selatius]

27. I'll tell you that life would be much easier if I didn't need food to live.

But I guess that's the realm of gods and spirits.

[LeftHander]

18. "D" word....deflation....

everyone said no no no but here in reality land prices are falling as well as the selection of goods and services available to the consumer.

[DesertDiamond]

19. Since they exclude the basics of life, these numbers are meaningless. Many of us can't afford

anything beyond the basics. So these numbers are BS.

[Imagevision]

25. Bloomberg news recently stated foreclosures will pass 2009 numbers by the 4th quarter