Inflation at 3.5% for August 2008
Yikes, now that is real inflation, with the CPI being announced at 3.5% for August 2007-08, and my first reaction is “yikes“.
Gasoline prices rose 26.3% in August compared with the same month a year earlier. Prices for other energy components, such as natural gas and fuel oil and other fuels, also contributed significantly to the rise in consumer prices. Overall, energy prices rose 20.2% over the 12 months to August 2008.The increase in the energy price index accounted for about half of the overall increase in the 12-month variation of the CPI in August. Excluding energy, the CPI rose 1.8% over the 12 months to August, up from the 1.6% 12-month rate of growth posted for July.
Without price gouging on oil CPI would only be 1.8%, and might even be lower given those prices are increasing most likely to deal with higher energy prices.
CPI for August 2007-08
The Big Picture
Interesting numbers to mull over, clothing prices continue to drop as well, very interesting to me.
| Consumer Price Index and major components | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (2002=100) | ||||||||||||
| Relative importance1 | August 2008 | July 2008 | August 2007 | July to August 2008 | August 2007 to August 2008 | |||||||
| Unadjusted | ||||||||||||
| % change | ||||||||||||
| All-items | 100.00 2 | 115.6 | 115.8 | 111.7 | -0.2 | 3.5 | ||||||
| Food | 17.04 | 116.8 | 116.5 | 111.8 | 0.3 | 4.5 | ||||||
| Shelter | 26.62 | 123.8 | 123.3 | 117.6 | 0.4 | 5.3 | ||||||
| Household operations and furnishings | 11.10 | 104.4 | 104.4 | 103.5 | 0.0 | 0.9 | ||||||
| Clothing and footwear | 5.36 | 93.7 | 93.3 | 95.4 | 0.4 | -1.8 | ||||||
| Transportation | 19.88 | 123.1 | 125.7 | 116.3 | -2.1 | 5.8 | ||||||
| Health and personal care | 4.73 | 109.3 | 108.5 | 107.6 | 0.7 | 1.6 | ||||||
| Recreation, education and reading | 12.20 | 103.5 | 103.2 | 102.9 | 0.3 | 0.6 | ||||||
| Alcoholic beverages and tobacco products | 3.07 | 127.5 | 127.6 | 126.1 | -0.1 | 1.1 | ||||||
| All-items (1992=100) | 137.6 | 137.8 | 132.9 | -0.1 | 3.5 | |||||||
| Special aggregates | ||||||||||||
| Goods | 48.78 | 111.5 | 112.1 | 107.7 | -0.5 | 3.5 | ||||||
| Services | 51.22 | 119.6 | 119.4 | 115.6 | 0.2 | 3.5 | ||||||
| All-items excluding food and energy | 73.57 | 110.5 | 110.4 | 109.2 | 0.1 | 1.2 | ||||||
| Energy | 9.38 | 164.0 | 169.1 | 136.4 | -3.0 | 20.2 | ||||||
| Core CPI3 | 82.71 | 112.0 | 111.7 | 110.1 | 0.3 | 1.7 | ||||||
|
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September 26th, 2008 at 1:47 am
I don’t know when these all become the normal stage, but I am sure It will take some time, I am going to save my money on my savings account.