U.S. Consumer Prices Rose 0.2% in August; Core Rate Rose 0.2%

[swag]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aa.W0rlcUqPg&refer=home

Sept. 15 (Bloomberg) -- Prices paid by U.S. consumers rose in August at half the previous month's pace, pointing to an easing in inflation pressures as forecast by Federal Reserve policy makers.

The consumer price index rose 0.2 percent in August following July's 0.4 percent increase, the Labor Department said today in Washington. Excluding food and energy costs, so-called core prices rose 0.2 percent after a 0.2 percent gain.

A cooling U.S. economy and fuel prices that have been receding from July levels will encourage Fed policy makers to refrain for a second straight month from lifting interest rates, economists said. Still, the report showed the biggest year-over- year increase in core prices since 2001, suggesting the slowdown in inflation will be gradual and extend well into 2007.

``The inflation outlook is for a very slow moderation in price pressures as the economy downshifts to a slower pace,'' Carl Riccadonna, an economist at Deutsche Bank Securities Inc. in New York, said before the report. ``We're not looking for a quick correction, but the Fed will probably be on hold for a while.''

Consumer prices rose 3.8 percent during the 12 months ended in August compared with 4.1 percent in the period ended in July. Core prices rose 2.8 percent from a year earlier, the biggest 12- month jump since November 2001.


. . .

[Deja Q]

1. Given oil is down to $63/barrel, prices for goods should come down too

(betcha they won't...)

[whistle]

2. Someone is not telling the truth here, my grocery bill increased

...some 20% in the last 4 months, insurance rates on auto and home up 22%, utilities up 20%, gas up 50%, basic clothing items (under-ware, socks, shoes, etc.) up 20%, dining out up 20%. This inflation index is a total sham as far as I'm concerned and congress needs to investigate the process.

[Teaser]

3. you do understand the concept of averaging, no?

nt

[whistle]

4. Of course, but people who wade into a lake that has and average

...depth of 18 inches can drown 10 feet off shore if they can't swim. What about inflation by consumer segments consumables which are purchased every week vs big ticket items which one buys only once a decade or every twenty years?