Inflation and Prices
In March, retail prices jumped but longer-term inflation trends held steady. The Consumer Price Index (CPI) rose 7.8%, following a 4.5% rise in February. The core CPI, which excludes the volatile food and energy prices, also surged ahead (4.3% at an annualized rate, its highest monthly growth rate since August 2002). However, the median CPI, which attempts to control for volatile monthly price changes by considering the center of the monthly price change distribution, increased a more moderate 2.8%.
Suggested citation: “Inflation and Prices,” Federal Reserve Bank of Cleveland, Economic Trends, no. 05-05, pp. 02-03, 05.01.2005.