Inflation Rate Is Down, Core Measures Hold Steady
Although critics of the federal government’s stimulus plan were concerned about the what effect the fallout would have on inflation, it seems that the bark has been worse than the bite.
Based on the consumer price index, or C.P.I., the rate of inflation fell from 1.7 percent in January 2012 to 1.6 percent in January 2013. The annual core inflation, which is the consumer price index minus food and energy, held steady at 1.9 percent. The C.P.I was flat on a month-to-month basis.
Month to month, the core measure is up 0.3 percent. Rising costs of shelter and clothing attributed to most of that increase.
Slow rates of inflation are generally good, but it will probably take more than that to comfort consumers, who are now facing spiking gasoline costs, and the effects of the expiration of tax cuts. According to the Los Angeles Times, the latter will cut roughly $40 from the average biweekly paycheck…