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The government reported on consumer prices for September:

Inflation pressures remained modest in September even though gasoline prices edged higher.

The Labor Department said Thursday that consumer prices rose 0.2 percent last month, matching economists' expectations. Prices excluding energy and food were also up 0.2 percent, slightly higher than the 0.1 percent increase analysts had forecast.

Over the past 12 months, consumer prices are actually down 1.3 percent, reflecting a severe recession which has kept a lid on price pressures across a wide range of products and services.

The core inflation rate, which ignores food and energy prices, comes in for a lot of ribbing, but it is useful. Take a lot at the headline inflation rate (blue) compared with the core rate (black) and you can see how much more stable it is:

The core rate hasn't left range between 1% and 3% in 14 years.

Posted by edelfenbein at October 15, 2009 1:11 PM