The Bureau of Labor Statistics (BLS) released some important data today surrounding the state of the U.S. economy. The first release shows the current CPI (consumer price index) or rate of inflation:

(BLS Release) […] The all items index increased 1.5 percent for the 12 months ending February, a smaller increase than the 1.6-percent rise for the 12-months ending January. The index for all items less food and energy rose 2.1 percent over the last 12 months, a slightly smaller figure than the 2.2-percent increase for the period ending January. The food index rose 2.0 percent over the past year, its largest 12-month increase since the period ending April 2015. In contrast, the energy index declined 5.0 percent over the last 12 months. (read more)
As noted above, energy prices are 5.0% lower year-over-year; this is a significant reason for the current low inflationary rate. Also energy prices (fuel, gas, oil) disproportionately impact the middle-class as an unavoidable cost. Lower gas prices (currently down 9.1%) help middle-America, and also have a downstream impact of lowering product transportation costs.
An overall annual rate of inflation at 1.5 percent is exactly on target. CTH has been predicting this energy-based outcome for more than three years:
(more…)







