Inflation and Prices
The stronger, if still modest, recent increase in retail prices continued into February. In fact, the Consumer Price Index (CPI) surged an annualized 6.0% in January, the largest monthly increase since February 2003. Although more than three-fourths of the CPI’s January increase resulted from a 4.7% rise in energy costs (mostly caused by an 8.0% increase in petroleum-based energy), February’s core CPI of 1.9% was also a bit higher than the recent trend. The median CPI and the 16% trimmed-mean CPI, two inflation measures designed to exclude the most extreme price changes, increased at annualized rates of 1.6% and 2.0%, respectively.
Suggested citation: "Inflation and Prices," Federal Reserve Bank of Cleveland, Economic Trends, no. 04-03, pp. 02-03, 03.01.2004.