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Consumer Price Index Posts Largest 12-month Increase Since September 2008

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president Jimmy Carter

the staff of the Ridgewood blog

Ridgewood NJ, fanning the fear of inflation  ,the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.8 percent in April on a seasonally adjusted basis after rising 0.6 percent in March, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 4.2 percent before seasonal adjustment.

This is the largest 12-month increase since a 4.9-percent increase for the period ending September 2008. The index for used cars and trucks rose 10.0 percent in April. This was the largest 1-month increase since the series began in 1953, and it accounted for over a third of the seasonally adjusted all items increase.

Crystallizing inflation fears , after the government reported that headline consumer prices surged by a faster than expected 4.2% last month. Excluding food and energy, prices jumped 0.9 percent in April (SA) and are up 3.0 percent over the year.

The jitters have surfaced as the U.S. economic recovery , hammered by the COVID-19 pandemic , appears to be quickening. A report from the Labor Department on Tuesday showed job openings reached a record high in March, and a separate survey showed a record proportion of small business owners reported job postings that could not be filled last month.

Top this off with a  system-wide disruption following a cyberattack on a key energy pipeline operator has sent gasoline prices higher, accelerating an already upward-moving trend in energy prices as demand for travel and fuel resurges coming out of the COVID-19 pandemic. The tableau of a faster economy and soaring prices complicates the Federal Reserve’s policy of allowing the economy to run hot — and Wall Street’s willingness to take the central bank at its word.

1970’s gas lines 

The food index increased in April, rising 0.4 percent as the indexes for food at home and food away from home both increased. The energy index decreased slightly, as a decline in the index for gasoline in April more than offset increases in the indexes for electricity and natural gas.

president Ford Whip inflation now

The index for all items less food and energy rose 0.9 percent in April, its largest monthly increase since April 1982. Nearly all major component indexes increased in April. Along with the index for used cars and trucks, the indexes for shelter, airline fares, recreation, motor vehicle insurance, and household furnishings and operations were among the indexes with a large impact on the overall increase. The all items index rose 4.2 percent for the 12 months ending April, a larger increase than the 2.6- percent increase for the period ending March.

Similarly, the index for all items less food and energy rose 3.0 percent over the last 12 months, a larger increase than the 1.6-percent rise over the 12 month period ending in March. The energy index rose 25.1 percent over the last 12-months, and the food index increased 2.4 percent.

5 thoughts on “Consumer Price Index Posts Largest 12-month Increase Since September 2008

  1. If you use a pre-Clinton CPI measure, we’ve been running 10% annualized inflation over the last few months. There’s no fighting it. US public and private debt is at such levels that inflation is needed to pay it off. It’s a cyclical thing that will last for a decade if not longer. We’re just noticing it now because of Covid-related reasons, but Covid will pass and inflation will stay.

    So go buy things you’ve been dreaming about! Tomorrow they will be more expensive.

  2. Dow slides 400 points, after inflation climbs to highest in 13 years

    Thanks Uncle Joe….

    Biden… Best President Ever!

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  3. Last time Inflation was this high was 13 years ago… in 2008

    Hmmm, I wonder… Who was President in 2008 ???

    Oh Right… Last time INFLATION was this high, Obama/Biden were in the White House.

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  4. What the hell is this guy doing. You better wake up real fast. And for his psychic she’s a bullshit artist I see right through her. And has nothing to do with color, race, religion,

    Most of us don’t give two shits if you like trump or hate Trump the bottom line he was good for the country, he’s got a big set of balls and other countries are scared. Now all the countries are trying to steamroll over us.

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  5. Gee, wonder what all that DEBT the Village has taken on for the garagezilla, via Ridgewood Water for the Elks HQ renovations, etc will cost as interest rates rise with inflation? $6.5 million in interest costs in the $52.9 million municipal budget this year alone, and that’s not even including Ridgewood Water!

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