Inflation and Prices
The broad-based rise in retail prices, which began in March, was still evident in July. The Consumer Price Index (CPI) rose 5.5%; the core CPI, which excludes the presumably more volatile food and energy prices, rose a more modest 2.4% (annualized rate). The median CPI, which attempts to isolate inflation trends by focusing on the middle of the monthly price-change distribution, rose a brisk 4.4% (annualized rate).
Suggested citation: “Inflation and Prices,” Federal Reserve Bank of Cleveland, Economic Trends, no. 06-09, pp. 02-03, 09.15.2006.