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The Consumer Price Index (CPI) decreased by 1.5 percent in August from its level a year ago, according to data released this month by the U.S. Bureau of Labor Statistics. This was the sixth month in the “deflation” zone. Despite some increases in previous months, energy prices dropped 23 percent from their level a year ago, and this accounts for most of the downturn in the overall CPI.
Even after factoring in the recent stretch of price deflation, consumer prices are 29.2 percent higher than ten years ago. This means that it now takes $1.29 to buy what a dollar bought in August 1999.
The chart and table below show longer-term trends in the overall CPI and major categories of goods and services.
Source: U.S. Bureau of Labor Statistics. Click to enlarge chart.
Percent Change in Selected Components of the CPI
(not seasonally adjusted) |
|
12 months
ended
August 2009 |
10 years
ended
August 2009 |
| All Items |
-1.5 |
29.2 |
| Food and Beverages |
0.6 |
32.2 |
| Housing |
-0.6 |
32.0 |
| Apparel |
0.6 |
-8.1 |
| Transportation |
-10.8 |
26.6 |
| Medical Care |
3.3 |
49.5
|
| Recreation |
0.9 |
12.3 |
| Education & Communication |
2.8 |
26.6 |
| Other Goods and Services |
7.4 |
44.7 |
| Special Indexes: |
|
|
| Energy |
-23.0 |
84.2 |
| Food |
0.4 |
32.4 |
| All Items less Food and Energy |
1.4 |
24.0 |
Read more about price inflation:
The April 6, 2009 issue of Research Reports includes a detailed table showing how much the CPI and dozens of the goods and services included in it changed, in percentage terms, in 2008. The biggest drop: gasoline prices, down 43 percent. The biggest increase: potatoes, up 22 percent. This Research Reports issue is available free to AIER subscribers or $2 for non-members.
Use AIER’s Online Cost of Living Calculator to see how much the general price level has increased since any year going back to 1913.
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