Inflation Eases to 2.2% year over year
Oh boy! My predictions of doom and gloom last month again were unfounded as the year over year inflation rate eased to 2.2% in April. Just goes to show that the premise that Economists have predicted 12 out of the last 2 recessions, holds for Financial Bloggers like me too!
The claim is gasoline only went up 2.6% in April, but it has been going up by so much these days, the cumulative effect is going to be felt soon everywhere (is my prediction).
As long as the price index can stay low, there is less pressure on interest rates to go up, and the Debtor Nations (aka North America)are protected for yet another month, from themselves, but how long will this last?
Another scary thing is that Food and Shelter are both up over 3% year over year, and to me these are two very important costs to watch. Shelter for me isn’t as important, since I already have it, but food, with as many kids as I have, that one is really important!
| Consumer Price Index and major components | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (1992=100) | ||||||||||||
| Relative importance1 | April 2007 | March 2007 | April 2006 | March to April 2007 | April 2006 to April 2007 | |||||||
| Unadjusted | ||||||||||||
| % change | ||||||||||||
| All-items | 100.002 | 132.8 | 132.3 | 130.0 | 0.4 | 2.2 | ||||||
| Food | 16.89 | 135.0 | 135.0 | 130.0 | 0.0 | 3.8 | ||||||
| Shelter | 26.75 | 132.2 | 131.3 | 127.7 | 0.7 | 3.5 | ||||||
| Household operations and furnishings | 10.58 | 117.5 | 117.5 | 116.4 | 0.0 | 0.9 | ||||||
| Clothing and footwear | 5.37 | 102.8 | 102.5 | 100.8 | 0.3 | 2.0 | ||||||
| Transportation | 19.79 | 159.4 | 158.2 | 158.5 | 0.8 | 0.6 | ||||||
| Health and personal care | 4.52 | 123.4 | 122.9 | 122.3 | 0.4 | 0.9 | ||||||
| Recreation, education and reading | 11.96 | 127.5 | 127.4 | 126.6 | 0.1 | 0.7 | ||||||
| Alcoholic beverages and tobacco products | 4.13 | 153.9 | 153.4 | 150.7 | 0.3 | 2.1 | ||||||
| All-items (1986=100) | 170.1 | |||||||||||
| Purchasing power of the consumer dollar expressed in cents, compared to 1992 | 75.3 | 75.6 | 76.9 | |||||||||
| Special aggregates | ||||||||||||
| Goods | 48.84 | 126.4 | 125.9 | 125.1 | 0.4 | 1.0 | ||||||
| Services | 51.16 | 139.9 | 139.3 | 135.5 | 0.4 | 3.2 | ||||||
| All-items excluding food and energy | 74.27 | 127.7 | 127.4 | 125.2 | 0.2 | 2.0 | ||||||
| Energy | 8.84 | 180.3 | 176.1 | 180.1 | 2.4 | 0.1 | ||||||
| Core CPI3 | 82.75 | 131.2 | 131.0 | 128.0 | 0.2 | 2.5 | ||||||
|
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