Jan 0.5% CPI increase is 6% annual inflation - why no media notice of 6%?

[papau]

http://ap.tbo.com/ap/breaking/MGADVR1DWQD.html

Sharply Higher Energy Costs Lift Consumer Prices by 0.5 Percent in January By Jeannine Aversa Associated Press Writer

WASHINGTON (AP) - Sharply higher costs for gasoline and other energy products pushed consumer prices in January up by 0.5 percent, the largest increase in nearly a year. <snip>

Some economists believe the Fed will start to nudge up short-term rates later this year. Others don't believe rates will move until 2005.

Even though Greenspan was optimistic that inflation would remain under control this year, he did say he would keep a close eye on rising energy prices, especially for natural gas and gasoline. <snip>


The 0.5 percent rise in overall consumer prices in January marked the largest rise since February 2003 when consumer prices went up by the same amount. Economists were expecting a smaller, 0.3 percent rise in the overall CPI last month and a 0.1 percent increase in the core rate of inflation.

[mhr]

1. Well We Know The Answer Now Don't We - Must Make Bush Look Good

Must Make Bush Look Good

Must Make Bus h Look Good

Must Make Bush Look Good

Must Make ..........

[papau]

2. Seems Stock Market noticed 6% inflation and is down 2/20

Wonder if Media will still spin it as "all is well in the Bush world"

[strategery blunder]

3. I think inflation numbers need to be compounded

when doing such calculations, but I'm not sure. If they are compounded, your projection should be 6.16% annual inflation.

Doesn't sound like much of a difference...until you tell your kids how much more a $20 bill bought when you were a kid. (Heck, my grandmother tells me that a penny was actually worth something when she was a child!)