Latest CPI Report and Other Indicators Suggest Low Inflation May be the “New Normal”

Latest CPI Report and Other Indicators Suggest Low Inflation May be the “New Normal”

By Jim Cline and Kate Kremer

As we had suggested in our last article on inflation trends, inflation seems to be trending downward.  The CPI numbers confirm that trend.  The latest inflation report both for Seattle and All-Cities is sub-2% and other recent inflation projections suggest that trend might continue. The recently released August CPI numbers report the National inflation index (All-Cities-W) at 1.5% and the Seattle-W even lower — 1.1%.  A year ago, the corresponding were 1.7% (All-Cities) and 2.7% (Seattle): This graph shows the declining rate over the past year: [Read more…]

June CPI Report Shows Continued Low Inflation

June CPI Report Shows Continued Low Inflation

By Jim Cline and Kate Kremer

The just-released June CPI numbers show that inflation continues to be low.  The Seattle CPI-W index came in at 1.2% up 1/10 of a percentage from April but down from 2.7% from last June.  The All-Cities index came in at 1.8%, up from 0.9 in April and slightly up from last June’s 1.6%. This graph shows the movement over the past year.

[Read more…]

National November CPI Index Drops from October

National November CPI Index Drops from October

By Jim Cline

The November national inflation number, as reported by the All Cities CPI-W dropped to 1.7%, a full half percent below the October report for the same Index (2.2%).  The All Cities CPI-U was reported at 1.8%.  (These indices report inflation as measured over 12 months). According to the Bureau of Labor Statistics report, the drop of inflation is almost entirely attributable to a decrease in gas and energy prices. [Read more…]