Inflation report says energy prices dropped in February

[Randall]

Cut it out. Looks like more cherry picking to me. Energey prices down in early february so that's where they price them? Energy is up big in the last several months as we all know.

 

ECONOMIC REPORT

Consumer inflation moderates in February

CPI held in check by drop in energy prices

By Greg Robb, MarketWatch

Last update: 8:49 a.m. EDT March 14, 2008

 

WASHINGTON (MarketWatch) -- Led by a quirky decline in energy costs, U.S. consumer inflation moderated in February, opening the door for the Federal Reserve to keep cutting interest rates to support flagging economic growth.

 

The consumer price index was flat in February, the Labor Department said Friday. Wall Street economists had expected a 0.2% increase. Read the complete government report.

In addition, core prices -- which exclude volatile food and energy costs -- were also unchanged, below the 0.2% gain in retail-level inflation that economists surveyed by MarketWatch had been looking for.

 

This was the lowest core rate since November 2006.

:huh:Energy prices decreased 0.5% in February, the biggest drop since last August. Economists said that gasoline prices dropped at the beginning of the month when the government survey was conducted but that prices then jumped as the month progressed.

 

 

As a result, last month's improvement in prices may be short-lived.

 

Apparel prices fell 0.3% in February. Apparel has been on a upward trend in recent months.

 

Prices charged for medical care, always a source of higher prices because of low competition, increased a slim 0.1%.

 

In the past year, the CPI has risen 4.0%, down from a 4.3% annualized gain in January. The core CPI has risen 2.3%, down from the 2.5% reading in the previous month.

Fed officials have said that they have been concerned that inflation has been running faster than they would like.

 

However, a majority of Fed policymakers have indicated that the downward risks to the economy are greater than the risk of rising prices. They also expect inflation to cool as the economy continues to slow. Read full Fed coverage.

 

Many analysts expect the Fed to lower interest rates by a half a percentage point, to 2.5%, when policymakers meet next week.

Real weekly earnings rose 0.3% in February, the government said in a separate report.

 

More CPI details

Transportation costs decreased 0.7% last month, with airline fares off 0.3% and prices for new cars down 0.3%.

Drug prices gained 0.1% in February. Shelter costs were flat, the lowest reading since September 2005.

Electricity costs fell 0.5% in February, the biggest decline since December 2005.

Greg Robb is a senior reporter for MarketWatch in Washington.

[Randall]

This must be where they're tracking gas prices.

 

 

All you need is a time machine.