Consumer Price Index Up 2.7% Since Last Year
January 15, 2009 - December's U.S. consumer prices rose 0.1%, with a slight boost in food and gasoline costs. After a 0.4% increase in November, the Labor Department's latest purchase numbers reflect a softer economic recovery than originally thought.
The core CPI, which excludes both food and energy, has increased by 0.1% after flattening the month prior. During the past twelve months, the overall consumer price index has risen 2.7%, a dramatic surge since a 0.1% increase in 2008.
Additionally, the Federal Reserve reported that there was a 0.6% increase in industrial production for December. Capacity utilization was up to 72%, with utilities leaping 5.9% up to 82.9% for the month.
Just two days ago, the Fed released January's Beige Book, which disclosed that ten out of the twelve districts have seen moderate increases in economic conditions. With the unemployment rate at 10%, interest rates are likely to remain historically low as long as inflation remains in check.