Inflating CPI

June 18, 2014

Inflation is finally looking up. US consumer prices rose 0.4% in May — the biggest one-month jump since February 2013 and twice what economists expected. This rise  could have implications for the Fed’s two-day policy meeting this week, though Reuters reports the expectation remains the same: the taper will continue, but an interest rate hike is still months off.


Reuters has more context about the CPI report:

May’s rise in consumer prices built on a 0.3 percent advance in April. With tensions escalating in Iraq, a major world oil producer, inflation is likely to push higher in the coming months.

In the 12 months through May, consumer prices increased 2.1 percent, the biggest gain since October 2012. That followed a 2.0 percent rise in the period through April, marking the first back-to-back months in which the year-on-year CPI had risen at least 2 percent since early 2012.

Stripping out food and energy prices, the so-called core CPI rose 0.3 percent, the largest increase since August 2011.


We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see


Posted by ischumacher | Report as abusive

Inflation robs those who save, more especially so in a zero interest rate environment
Deflation rewards those who save.
Economists, or worse, hack writers pumping out propaganda to support a biased view that inflation is good, will learn one day that deflation can be good too, it’s all about how you manage it.

Posted by lotuslandjoe | Report as abusive