August CPI Posts Biggest Gain In Four Months

Jan. 13, 2005
By John S. McClenahen Following three months in which it showed little or no change, the U.S. Labor Department's Consumer Price Index (CPI) advanced 0.3% in August. It was the largest increase in the closely watched measure of inflation since April's ...
ByJohn S. McClenahen Following three months in which it showed little or no change, the U.S. Labor Department's Consumer Price Index (CPI) advanced 0.3% in August. It was the largest increase in the closely watched measure of inflation since April's 0.5% increase. Higher costs for energy were a factor. Up 0.6% in August, energy costs increased for the second consecutive month -- though they clearly weren't the only culprit. The so-called "core" CPI, which excludes the relatively volatile month-to-month changes in prices for food and energy, rose 0.3% in August, its biggest monthly increase since April. Nevertheless, August's CPI rise "does not reflect a new upward trend," insists Karen Dexter, an economist at Merrill Lynch & Co., New York. She figures that minus gasoline, tobacco and apparel, the CPI was up just 0.1% -- and that minus apparel and tobacco, the core CPI also was up just 0.1%. "We still believe that inflation is a non-issue," states Dexter. Even with a higher rate of inflation, real earnings rose 0.3% from July to August of this year, other Labor Department data show. And between August 2001 and August 2002 average weekly earnings rose 3.1%, the department reports.

Popular Sponsored Recommendations

Decarbonization Navigator: A Toolkit for Organizations

Sept. 28, 2023
The increasing urgency of addressing climate change along with stakeholder pressures are driving the need for organizations to prioritize decarbonization. Discover how to start...

Lean Manufacturing in the Age of the Industrial Internet

Oct. 24, 2023
Read how advanced MES capabilities can help you improve your labor utilization, reduce WIP, and optimize your production. Download the white paper today.

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

Smarter Savings for Manufacturers - Guide

Sept. 11, 2023
Boost your manufacturing sales and revenue while reducing costs. Learn how one platform can help your business be more agile and productive in today's market.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!