Core U.S. Consumer Prices Rose in April by Most in Two Years

[Purveyor]

Source: Bloomberg

by Michelle Jamrisko
8:30 AM EDT
May 22, 2015

The cost of living excluding food and fuel rose at a faster pace than expected in April, indicating inflation is inching toward the Federal Reserve’s goal.

The core consumer-price index climbed 0.3 percent, the biggest gain since January 2013, reflecting broad-based increases, a Labor Department report showed today in Washington. The median forecast of 84 economists surveyed by Bloomberg called for a 0.2 percent advance. Prices including food and fuel rose 0.1 percent.

Costs will probably continue to increase as fuel expenses stabilize and a lack of apartments pushes up rents, one of the biggest categories. Further firming in price pressures should help Federal Reserve policy makers gain confidence inflation will move toward their 2 percent goal as they consider their first interest-rate rise since 2006.

“Potentially, things are building in terms of inflation faster than we thought,” said Guy Berger, an economist at RBS Securities Inc. in Stamford, Connecticut. “If core inflation really is firming, then all of a sudden that starts putting pressure on the Fed.”

Read more: http://www.bloomberg.com/news/articles/2015-05-22/core-u-s-consumer-prices-rose-in-april-by-most-in-two-years

[BlueJazz]

1. But with that big rise in the minimum wage most workers will still be way ahead.

[Demeter]

4. What rise?

Obama's federal increase didn't pass Congress. Some localities may have tried, but the effects will be spotty, and wiped out by TTP anyway.

[BlueJazz]

5. That's why I put Bizarro World underneath. :) :)

https://en.wikipedia.org/wiki/Bizarro_World

[progree]

2. Over the last 12 months: CPI: -0.2%. Core CPI: +1.8%

[Demeter]

3. There will be no price inflation without wage increases, because

nobody will be able to spend money they don't have, and we are already sworn off credit/debt financing after the last bear trap Wall St. laid at our feet.

When 47% or more of the population is shut out of the economy due to insufficient income, we have a problem that won't be fixed by the Federal Reserve jiggering the data points.

[passiveporcupine]

7. Unfortunately, the use of credit is way up and climbing fast right now.

Most Americans did not learn the lesson about the false security of living on debt.

[imthevicar]

6. Does this Include

Everything in the stores hit with the shrink ray in the past 2 years!? I think Not!

[Psephos]

8. a good point n/t

[Snow Leopard]

9. food is/has been going up

too recently. I didn't see as much price increase in the last 2 years combined that I have seen this year. The downsize/hidden price increases seem about the same as previous years. Unless you have been getting raises higher than I'd say 4% probably more like 5% you are most likely losing ground.