Inflation and Prices
After accelerating sharply over the summer, consumer price increases moderated to a 2.2% annualized pace in October—under their 12- month trend (2.6%). Two measures of so-called core inflation, the CPI excluding food and energy and the median CPI, both rose about 2% (annualized) during the month, also slightly under their recent trends. Still, on average, the rise in consumer prices this year has topped its 1998 pace by about a percentage point, heightening worries about a long-anticipated inflationary upturn. The 12-month trend in the CPI growth rate is now slightly above the upper end of the range projected for 1999 and 2000 by the Federal Open Market Committee.
Suggested citation: "Inflation and Prices," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-12, pp. 07-08, 12.01.1999.