Inflation up slightly, still below Fed target
Oct. 31, 2013 – Overall inflation increased slightly in September – 0.2 percent month over month – according to information presented in NAFCU’s Macro Data Flash report on the consumer price index.
NAFCU Research Assistant Doug Christman analyzed data from the Bureau of Labor Statistics in his report on CPI, which grew 1.2 percent year over year in September, down from 1.5 percent in August.
“Inflation continues to run below the Federal Reserve’s 2 percent target. Demand for goods and services remains low due to slow employment and income growth and the weak economic recovery,” said Christman.
“Changes in overall CPI over the past several months were due primarily to changes in energy prices,” Christman wrote. “On a year-over-year basis, core CPI held fairly steady at 1.7 percent, relatively unchanged over the previous five months.”
Christman found that core prices, excluding food and energy prices, increased 0.1 percent in September compared to August, and were 1.7 percent higher than they were last year. Energy prices increased by 0.8 percent month over month, and decreased 3.1 percent compared to last year. Food prices were consistent with the previous month, and were up 1.4 percent compared to the previous year.
NAFCU Macro Data Flash