Inflation at 1.7%, Holy Cow! August 2007

Weaker Gasoline prices are the reason given, but I am still stymied by the fact that inflation is dropping even with gas prices at $1.00 per litre again.

Now inflation is the measure of how much things have risen in price, not that things are expensive in the first place, so I guess this makes sense, but more expensive fuel should be rippling through prices in the economy, which does not seem to be happening.

Here is the breakdown of things for you who love numbers.

Consumer Price Index and major components
(2002=100)
	Relative importance	August 2007	July 2007	August 2006	July to August 2007	August 2006 to August 2007
		Unadjusted
					% change
All-items	100.00	111.7	112.0	109.8	-0.3	1.7
Food	17.04	111.8	112.3	109.2	-0.4	2.4
Shelter	26.62	117.6	117.0	113.5	0.5	3.6
Household operations and furnishings	11.10	103.5	103.2	101.7	0.3	1.8
Clothing and footwear	5.36	95.4	94.6	95.4	0.8	0.0
Transportation	19.88	116.3	118.5	118.0	-1.9	-1.4
Health and personal care	4.73	107.6	107.5	105.5	0.1	2.0
Recreation, education and reading	12.20	102.9	103.0	101.2	-0.1	1.7
Alcoholic beverages and tobacco products	3.07	126.1	126.0	121.8	0.1	3.5
All-items (1992=100)		132.9	133.3	130.7	-0.3	1.7
Special aggregates
Goods	48.78	107.7	108.6	108.1	-0.8	-0.4
Services	51.22	115.6	115.3	111.4	0.3	3.8
All-items excluding food and energy	73.57	109.2	109.1	106.8	0.1	2.2
Energy	9.38	136.4	139.6	141.7	-2.3	-3.7
Core CPI	82.71	110.1	110.0	107.7	0.1	2.2

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