March 2, 2015 Reading Time: < 1 minute

There’s more data out this morning showing subdued inflationary pressures. The Commerce Department reported today that the price index for personal consumption expenditures increased at an annual rate of 0.2 percent for the 12 months ending January. The Federal Reserve has set a target of 2 percent annual inflation, so this is far below that target.

The Wall Street Journal reported it was the lowest rate of headline inflation since October 2009. Cheap oil played an important role in keeping inflation down, but excluding food and energy, consumer prices increased at the annual rate of 1.3 percent, which the WSJ reported showed resiliency of underlying price pressures.

Our Everyday Price Index, released last week, showed that despite an economy that may have entered a soft patch, there are still areas of the economy that are demonstrating that same resiliency. It’s worth a look if you haven’t seen it yet.

Aaron Nathans

Get notified of new articles from Aaron Nathans and AIER.
AIER - American Institute for Economic Research

250 Division Street | PO Box 1000
Great Barrington, MA 01230-1000

Contact AIER
Telephone: 1-888-528-1216 | Fax: 1-413-528-0103

Press and other media outlets contact
[email protected]

Editorial Policy

This work is licensed under a 
Creative Commons Attribution 4.0 International License,
except where copyright is otherwise reserved.

© 2021 American Institute for Economic Research
Privacy Policy

AIER is a 501(c)(3) Nonprofit
registered in the US under EIN: 04-2121305