Inflation and Prices
The August inflation data show continued moderation in retail prices. The Consumer Price Index (CPI) rose a mere 0.6% (annualized rate) during the month, reversing August’s 0.6% decline. Energy costs dropped at a 3.1% annual rate (the second consecutive monthly decline), even as oil prices approached their forecasted peak. The core CPI, which excludes the volatile food and energy components, also rose—at a 0.6% annualized rate, its slowest monthly growth rate this year—while the median CPI increased at a 3.0% annualized rate.
Suggested citation: "Inflation and Prices," Federal Reserve Bank of Cleveland, Economic Trends, no. 04-10, pp. 02-03, 10.01.2004.