Magazine article Economic Trends

January Price Statistics

Magazine article Economic Trends

January Price Statistics

Article excerpt

02.26.09

[GRAPHIC OMITTED]

[GRAPHIC OMITTED]

The CPI rose at an annualized rate of 3.4 percent in January, reversing course after three consecutive monthly declines and outpacing all of its longer-term trends. Energy prices increased for the first time in six months, rising 22.9 percent (annualized rate), though much of that increase was driven by a rise in motor fuel (up 85.6 percent annualized rate). Household energy prices continued their downtrend (-10.6 percent). The CPI excluding food and energy (core CPI) rose 2.1 percent during the month, compared to an annualized growth rate of 0.9 percent over the three months prior. The Federal Reserve Bank of Cleveland's measures of underlying inflation trends, the median CPI and the 16 percent trimmed-mean CPI, increased 2.7 percent and 2.0 percent, respectively.

Producer prices reversed course as well, with the Producer Price Index (PPI) rising 10.4 percent (annualized rate) in January after its fifth consecutive decrease. January's increase was led by a 55.1 percent jump in the prices of energy goods, following a 68.3 percent decrease in December. The PPI excluding food and energy (core PPI) increased 5.0 percent during the month, compared to a 2.9 percent increase in December and a 4.2 percent gain over the past 12 months. Further back on the line of production, core intermediate goods prices continued to decline--albeit at a slower rate--falling 12.2 percent. Core crude goods prices actually posted a slight increase after five consecutive monthly decreases, rising 1.1 percent in January.

The price-change distribution was about as dose to a "normal" distribution that we have seen in quite some time. Only 29 percent of the index (by expenditure weight) exhibited price changes less than 1.0 percent, compared to 48 percent in December. On the other end of the price-change distribution, 47 percent of the index increased at rates exceeding 3.0 percent, much closer to the 10-year average of 44 percent than in December, when only 25 percent of the index rose at rates greater than 3.0 percent.

[GRAPHIC OMITTED]

That said, there were a couple of odd occurrences in this month's report. The price index for new vehicles increased 3.4 percent after five consecutive decreases. Moreover, leased car and truck prices jumped 29.5 percent in January after being relatively stable for a few months. Also, some apparel prices jumped during the month. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.