The CPI Report By The Numbers

There will be more interesting commentary to follow, but first a quick look at the BLS' report on October consumer prices, from the Federal Reserve Bank of Cleveland: 

Earlier today, the BLS reported that the seasonally adjusted CPI for all urban consumers rose 0.2% (2.4% annualized rate) in October. The CPI less food and energy rose 0.2% (3.0% annualized rate) on a seasonally adjusted basis.

As for the Cleveland measure of core inflation:

... the median Consumer Price Index rose 0.2% (1.9% annualized rate) in October.

Here's the scoop, in a handy table:

	Percent Change From Previous             Month
	May	June	July	Aug.	Sept.	Oct.
CPI	-0.1	0.0	0.5	0.5	1.2	0.2
CPI less food & energy	0.1	0.1	0.1	0.1	0.1	0.2
MEDIAN CPI	0.3	0.2	0.2	0.2	0.1	0.2
	Percent Change, Last 12             Months
	May	June	July	Aug.	Sept.	Oct.
CPI	2.8	2.5	3.2	3.6	4.7	4.3
CPI less food & energy	2.2	2.0	2.1	2.1	2.0	2.1
MEDIAN CPI*	2.4	2.3	2.3	2.3	2.3	2.3

 

The distribution of individual price changes looks much like it did last month: A lot of prices changing at a relatively rapid clip, but even more growing at annual rates below 2% (which includes a bunch that are actually falling):

That picture helps to illustrate why we are often so intently focused on information that goes beyond the headline number.  But more on that shortly.

UPDATE:
Kash is "becoming reassured that the spike in inflation this year due to higher oil prices will indeed prove to be temporary," but is worried that an economic "slowdown may already be underway."

Barry Ritholtz, on the other hand, reads Tuesday's PPI report and concludes that "Inflation remains robust."

But James Hamilton thinks inflation is "under control."

Mark Thoma has links to several news reports.

 

David K. Smith reports of decent news on the inflation front in the UK as well. So does Edward Hugh. So does the Skeptical Spectator.