Skip to comments.US consumer inflation up two percent [Stagflation Part Deux?]
Posted on 05/03/2010 2:30:06 PM PDT by SeattleBruce
Americans saw prices rise two percent in the year to March according to the Commerce Department's personal consumption expenditures index published on Monday. The figure, which is closely watched by the Federal Reserve as a sign of broader inflation levels, is approaching the maximum the central bank normally considers sustainable.
Energy and food costs rose 18.7 percent against March 2009, up almost four percentage points compared with February....
(Excerpt) Read more at breitbart.com ...
Can anyone say Stagflation, Part Deux?
you got to be kidding...whu the economy is just fine...NOT! FUBO!
Just go to the grocery and the gas station. It is more than 2%.
That would be a 2% annual rate, which is quite small and healthy. Any less would be the brink of deflation, which is a much greater danger than inflation.
But, you can't tell by the writing of the "Journalist" what "in the year" means.
Is the rate 2% for the calendar year January 2010 through March 2010? That would translate into a massive 8% annual rate (4 Quarters).
Or is it the Federal Fiscal Year since October 1st to March? That would give us about 4% annually.
Or is it truly a Year / Year comparison to last March, 2009?
There's no telling because the "Journalist" left substantial ambiguity in their statement. They probably can't do division and percentages anyway.
Below is what treasury direct says. They reset Ibonds rates today. The extrapolate inflation to be 1.54%
The CPI-U increased from 215.969 to 217.631 from September 2009 through March 2010, a six-month increase of 0.77%.
Understood. But for inflation that has been basically flat or negative for a couple years, to click up to 2 and threaten to go higher must be disconcerting for the socialist policy wonks/engineers who may have to force (pressure) the Federal Reserve Bank to raise rates to stave off inflation, while we’re sitting near a 10% ‘official’ UR.