During the first ten months of 2007, the CPI-U rose at a 3.6 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 2.5 percent for all of 2006. The index for energy, which increased 2.9 percent in 2006, advanced at a 12.3 percent SAAR in the first ten months of 2007. Petroleum-based energy costs increased at a 20.6 percent annual rate and charges for energy services rose at a 2.7 percent annual rate. The food index has increased at a 5.5 percent rate thus far in 2007, following a 2.1 percent rise for all of 2006. Excluding food and energy, the CPI-U advanced at a 2.3 percent SAAR in the first ten months of 2007 after increasing 2.6 percent in 2006.
The 10 month figures do not look good. But then again, the headline number is all people look at anyway. And here's how the Federal Reserve Will Look at the release:
During the first ten months of 2007, the CPI-U rose at a 3.6 percent seasonally adjusted annual rate (SAAR). This compares with an increase of 2.5 percent for all of 2006.The index for energy, which increased 2.9 percent in 2006, advanced at a 12.3 percent SAAR in the first ten months of 2007. Petroleum-based energy costs increased at a 20.6 percent annual rate and charges for energy services rose at a 2.7 percent annual rate. The food index has increased at a 5.5 percent rate thus far in 2007, following a 2.1 percent rise for all of 2006.Excluding food and energy, the CPI-U advanced at a 2.3 percent SAAR in the first ten months of 2007 after increasing 2.6 percent in 2006.
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