June inflation– ouch.

July 16th, 2008 by Rick Drain

The latest inflation release, the Urban Consumer Price Index (CPI-U), is terrible. Headline inflation, which includes food and energy, is at the highest level in more than five years. Core inflation is not quite a recent record, but it’s high and rising again.

You can look at the inflation graph for the past five years on the Macroeconomics page.

While you’re there– I’m hopping up on my soapbox again– take a look at the graphs for alternative ways to interpret the difference between core and headline inflation. I contend that simply ignoring food and energy is completely misleading for consumers and businesses. Headline inflation is the level that you are actually paying. All your money– your savings and your salary– buys 4% less than it did 12 months ago.

The administration says “don’t worry.” I say you’re being robbed.