Does the Labor Department’s latest consumer price report prove that “inflation is still a remote concern”?
The U.S. Labor Department’s consumer price report is being touted as evidence that “inflation is still a remote concern for the American economy” and is said to prove that there is “no threat of inflation.” Let’s take a look at the numbers: On the whole, it is true, this report does not show signs of much inflation. There are a few sectors, however, in which prices moved substantially higher. Prices of both new vehicles and used vehicles rose substantially (0.4 percent and 1.6 percent, respectively). (This, of course, isn’t news to Inflation Watch readers.) The price of medical care commodities rose 0.6 percent, the largest increase since February 2009. The price of transportation services rose by 0.7 percent, also the largest increase since February 2009. The price of medical care services rose by 0.4 percent, the largest increase since April 2009. Energy prices jumped 0.6 percent–a much smaller increase than in August, but a large price increase nonetheless. The biggest question mark
