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CPI Up 0.2% as Fresh Vegetables Soar in April

The Consumer Price Index for April reversed last month's course and rose by 0.2%.  Inflation increases were across the board.  Food rose 0.2%, energy 1.1% and all other items together increased 0.1%.  Shelter continues on it's tear with a 0.3% monthly increase.  Natural gas had a huge monthly increase of 2.2%.  Fresh vegetables had the largest monthly jump since February 2011, an increase of 5.1%.

Inflation Retreats in March

The March Consumer Price Index dropped by -0.3%.   That's unusual and a decline in CPI has not happened since February 2016.  The reason was volatile gas prices but America finally is catching a break on cell phone service costs too.  The gasoline index by itself dropped -6.2% for the month.  The bigger surprise is Inflation without food and energy prices considered dropped by -0.1%.

CPI Tamer in February

The Consumer Price Index for February returned to Earth with a 0.1% monthly increase.  January stayed unrevised at 0.6%.  The monthly change was the smallest gain since July 2016.  The main cause was gasoline, again, which dropped -3.0% for the month.  Inflation with food and energy price changes removed increased 0.2%.  From a year ago overall CPI has now risen 2.7%.

CPI Increased 0.2% As Gasoline Prices and Rents Rise

The November Consumer Price Index increased by 0.2%.  Once again, the main causes are shelter, which increased 0.3% for the month and gasoline, which rose 2.7% for the month.  Food inflation had no change for the fifth month in a row.  Inflation with food and energy price changes removed increased 0.2% as shelter is part of this measure.

CPI Jumps 0.4% on Shelter and Gas Costs

The October Consumer Price Index increased by a high 0.4%.  This is a six month high.  The usual suspects were shelter, which soared up 0.4% for the month and gasoline, which rose 7.0% for the month.  Food inflation had no change for the second month in a row.  Inflation with food and energy price changes removed increased 0.1% as shelter and medical costs are part of this measure.

Inflation Increases As Gas Prices and Shelter Costs Rise

The Consumer Price Index showed a September 0.3% increase.  The culprits were shelter, which soared up 0.4% for the month and gasoline, which rose 5.8% for the month.  Food inflation had no change.  Inflation with food and energy price changes removed increased 0.1% as shelter and medical costs are part of core inflation.

Q2 2016 Labor Productivity Declines By -0.5% as Labor Costs Rise

The BLS Productivity & Costs report for Q2 2016 shows labor productivity decreased -0.5% annualized.  Output increased 1.2% and hours worked increased 1.8%.  Unit Labor costs increased only 0.5% in Q2 2015.  The reason labor productivity declined was because economic output grew less than worked hours.  For the 2015 year, annual productivity rose 0.9%.

Consumer Spending Outpaces Income Growth Again

The June personal income and outlays report shows a 0.4% increase in consumer spending.  When adjusted for inflation, consumer spending rose 0.3%.  Personal income increased 0.2% while real disposable income increased 0.1% for the month.  This is decent growth in PCE.  From a year ago, real consumer spending has increased 2.8% while real disposable income has increased 2.2%.

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