Inflation and Prices
The general disinflation trend observed in the year-over-year comparisons continues. The Consumer Price Index (CPI) posted an annualized 2.6% increase in December after a 2.6% annualized decrease in November, resulting in an index level consistent with the September and October CPI. Meanwhile, the core CPI, a closely watched measure of inflation that eliminates the CPI’s volatile food and energy components, increased at a 1.2% annualized rate—an uptick from last month’s uncharacteristic 0.6% decline in the core index. The median CPI and the 16% trimmed-mean CPI, inflation measures designed to exclude the most extreme price changes, increased at annualized rates of 1.6% and 2.5%, respectively.
Suggested citation: "Inflation and Prices," Federal Reserve Bank of Cleveland, Economic Trends, no. 04-02, pp. 02-03, 02.01.2004.