CPI Reading Showing At Least Some Inflation Containment

Posted: January 16, 2008 at 8:37 am

The Consumer Pricing Index for DECEMBER 2007 is showing that prices on the consumer level are not running out of control.  The CPI came in at +0.3% on nominal CPI and +0.2% on a Core CPI basis (ex-food/energy).  The annual or year over year comparisons are higher with the numbers coming in at +4.1% on nominal CPI (down from +4.3% last month), and the Core CPI annual was +2.4% (versus +2.3% last month).

Inflation is still too high.  That is obvious.  But the FOMC is under fire right now to lower rates and Bernanke & Co. probably isn’t going to be able to worry about whether inflation is running in a 2% range or a 4% range until this immediate crisis can be quantified.

Jon C. Ogg
January 16, 2008

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