Real GDP up 2.8% in Third Quarter
GDP growth revised up to 3.6%

Inflation completely in check

The CPI report for October shows that inflation remains at historically low levels.  Overall, the CPI actually declined in October by 0.1%, pushed down by a 2.9% decrease in gas prices.

The graph below shows year over year changes in the CPI since 2003.  The average annual inflation over this period was 2.4% but, in the most recent year, prices increased by just under 1%.

Inflation1013

For a longer historical perspective, consider that inflation rates since 1960 averaged 4%.

The latest CPI report also reveals the presence of larger swings in some specific consumer categories. Here are a few of these, all of which are seasonally adjusted:

  • Frozen fish and seafood prices up 2.4% in October; up 5.9% in year
  • Lettuce price up 4% in October and 10.3% in year
  • Men's pants and shorts prices up 10.3% in October alone
  • Gasoline down 2.9% in October and 10.1% in year

What the heck is going on with the price of men's pants?