Are US Inflationary Concerns Inflated?

by: Mark J. Perry

The charts below are from the St. Louis Federal Reserve, using CPI data from the BLS, and show the percent change from a year ago, from 2000 - 2008.

Inflation: Food

Inflation: Energy

Inflation: All Items Less Energy and Food

Is it possible that inflationary fears are inflated? Consider that:

  1. Food inflation fell in both February and March 2008.
  2. Energy inflation fell in both February and March, and is lower in 2008 than in 11 months in 2005 and 2006.
  3. Inflation for all items less food and energy is lower in 2008 than in 10 months in 2006 and 2007.