The Consumer Price Index is out for December 2009 with an increase of 0.1% from last month and for the year, we have an overall increase of 2.7%.
This month it's used cars which have the price rise of 2.5%. Not surprising since cash for clunkers has now worn off. Travel increased too, airfare alone went up 2.4% in a month. Guess all of those naked screeners are spendy (a joke, it is assuredly fuel costs).
But recall how some food commodities are expected to go sky high in 2010, this report may be showing the first signs, with food increasing 0.2%. This month's 0.2% is the largest increase in a year. Energy also rose another 0.2% but this is the smallest increase in 5 months.
The cost to gas up your car has increased 53.5% in a year. If you heat your house with gas, you're in luck, the yearly price has dropped 18.1%. The question is does this actually translate to the massive drop in gas futures?
Smokers are getting hammered with a 30.1% increase in tobacco prices.
Below is the CPI for this recession period until present. One can see there was a deflationary cliff which occurred, which also looks to be long over.
Here's Food and take a nice long look for in a year from now, these prices will be a pleasant memory.
Here's energy for the start of the recession until present, and the variance is unreal, how can this possibly be just supply & demand?
Here is everything else, sans food and energy. As one can see, there would be no real deflationary spiral without energy included for this recession start time until present.
Finally here is the University of Michigan inflation expectation, where this month consumers believe it will increase 2.8% in 2010: