CPI Up 0.4 Per cent in February

[Owlet]

"The Consumer Price Index rose 0.4 percent in February—the largest such gain since last April.  Over the last three months, the CPI has averaged an annualized rate of inflation of 2.5 percent.  Last month’s bump in the inflation rate was largely driven by energy prices, which rose 3.2 percent from January to February.  Excluding volatile food and energy prices, the core CPI rose 0.1 percent in the month and has grown at a 1.9 percent annualized rate since November."

"Excluding volatile food and energy prices" has to be one of the least meaningful statements occurring in any government report. In other words, if I didn't drive or eat in February, the CPI increase for me was negligible. I wish I'd know that at the beginning of the month I could've adjusted my lifestyle accordingly. Too late for March, now: guess I'll start walking and fasting on April 1.

http://www.cepr.net/index.php/data-bytes/prices-bytes/energy-prices-bump-up-inflation-as-cpi-rises-04-percent-in-february

[DJ13]

1. "Excluding volatile food and energy prices"

That reminds me of something an "analyst" was crowing about (in defense of higher stock prices) on CNBC a couple of days back.

He was saying how "increased consumer spending" in the last month was "a good sign for the economy", but he failed to mention that the increase was mostly comprised of consumers being forced to pay higher gas prices.... which is hardly good news for consumer spending.

[banned from Kos]

2. Its why its silly to have energy prices in an inflation index.

When gas prices fall this summer it won't be called "deflation".

Are gas prices in a long-term upward trend? Sure. That is not inflation though. I hear a lot of what Paul Krugman derisively calls "Inflationistas" yapping about this. They don't know what inflation is.