•Press Release
May 14, 2008 (Prices Byte)
Prices Byte by Dean Baker
For Immediate Release: May 14, 2008
Contact: Alan Barber, (202) 293-5380 x115
"Since January, medical care costs have risen at a 1.2 percent rate, while jobs have grown at a 3.1 percent rate."
Retail inflation remained mild in April as the overall CPI increased by 0.2 percent, while core inflation rose by just 0.1 percent. The annual rate over the last three months in the overall CPI has been 2.3 percent, down from 3.9 percent over the last year. The annual rate in the core has been just 1.2 percent over the last three months, down from a 2.3 percent rate over the last year.
The overall inflation rate was held in check by flat energy prices in April, although the annual rate of increase over the last quarter was still 5.9 percent. Food prices rose by 0.9 percent in April, bringing their rate of increase over the last quarter to 6.3 percent, up from 5.1 percent over the last year.
Several factors helped to keep the core rate down. New car prices fell by 0.2 percent in April bringing their rate of decline over the quarter to 2.4 percent. This is striking because car prices in the finished goods index rose at a 3.6 percent annual rate from December to March. This suggests a serious squeeze on dealers’ profits.
