Non-Core Inflation Firmly In Double-Digit Range

If, after hearing about "core inflation" of just two percent in recent years, you've wondered how price increases for food and energy look by comparison, here's your answer.

The Bureau of Labor Statistics does not provide a "food and energy only" index (they really should), so to get "non-core CPI" above you have to combine the 13.8 percent weighting for food to the two energy components - the 4.2 percent weighting for household energy and the 5.5 percent contribution for motor fuel.

This accounts for a total of 23.5 percent of the overall CPI and much, much more for some individuals such as seniors and working families.

After peaking at 17.2 in the aftermath of Hurricane Katrina in 2005 and a respite during late-2006 and early-2007, "non-core inflation" is now back firmly in the double-digit range, rising from 10.6 in December to 11.9 percent in January after a reaching 12.5 percent in November.

Comments

[brooklyn91941:]

I guess if you live in a cave and only eat leaves and heat your home by a burning fire, than core CPI works. For everybody else buy Gold.

2008 Feb 21 11:41 AM