Inflation Hits Four-Year High

Today’s CPI report showed that inflation rose by 0.2% in May which was 0.1% ahead of expectations. The core rate, which excludes food and energy prices, rose by 0.3% which was also 0.1% ahead of expectations.

Breaking down the numbers, I took the monthly seasonally-adjusted core rates and annualized them. It turns out that May’s increase was the most in exactly four years. The seasonally adjusted core rate for May rose by 0.29%. Annualized, that comes to 3.50%. The last time it was higher was May 2006 when it rose by 3.57%.

Posted by on June 15th, 2011 at 8:14 pm

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