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Today's report on consumer prices shows that inflation is a still a problem. The headline rate was 0.4% and the core rate was 0.3%. Both were 0.1% above expectations.

Over the last four years, the headline CPI Index has grown at a 3.3% rate. The Fed Funds rate is currently targeted at 3%.

To put the resurgence of inflation into some perspective, here's a look at the four-year trailing rate of the core CPI.

The line is clearly moving in the wrong direction, but we've seen a lot worse.

Posted by edelfenbein at February 20, 2008 9:55 AM