Friday, February 20, 2009
Consumer prices rose for the first time in six months, largely due to higher energy costs, as the government's overall price index gained 0.3 percent in January following a decline of 0.8 percent in December.
On a year-over-year basis, unadjusted prices were unchanged but, when adjusted for seasonal variations, prices were down 0.2 percent as shown above.
The picture remains one of falling energy prices and not much else as food prices continued to rise last month and remain up 5.0 percent from year ago levels. Similarly, education and communication costs are up 3.6 over the last year and medical care costs have risen 2.6 percent.
If this is deflation, it's the wimpiest deflation the world has ever seen.