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Consumer Price Index Jumps to 7.9 Percent, Another New Four-Decades High

Year-over-year the CPI jumped to 7.9 percent, another new 40-year high.
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Consumer Price Index data from BLS chart by Mish

Consumer Price Index data from BLS chart by Mish

Year-Over-Year CPI Details 

  • The all items CPI index rose 7.9 percent for the 12 months ending February. 
  • The 12-month increase has been steadily rising and is now the largest since the period ending January 1982. 
  • The all items less food and energy index rose 6.4 percent, the largest 12-month change since the period ending August 1982. 
  • The energy index rose 25.6 percent over the last year
  • The food index increased 7.9 percent, the largest 12-month increase since the period ending July 1981.  
  • Rent increased 4.2% and Owners' Equivalent Rent OER rose 4.3%

OER is the mythical price one would pay to rent one's own house from oneself, unfurnished and without utilities. 

OER is the single largest component in the CP with a weight of 24.15%. Rent has a weight of 7.37%. Given that both are continually understated vs other measures of rent, the CPI is up more than stated.

I do not chart energy prices because at 25.6%. it skews the scale of everything else.

CPI Year-Over-Year Percent Change Long Term

Consumer Price Index data from BLS chart by Mish

Consumer Price Index data from BLS chart by Mish

CPI Month Over Month 

CPI Month-Over-Month 2022-02
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  • The gasoline index rose 6.6 percent in February and accounted for almost a third of the all items monthly increase
  • The food index rose 1.0 percent as the food at home index rose 1.4 percent; both were the largest monthly increases since April 2020. 
  • The index for all items less food and energy rose 0.5 percent in February following a 0.6-percent increase the prior month. 
  • The shelter index was by far the biggest factor in the increase, with a broad set of indexes also contributing, including those for recreation, household furnishings and operations, motor vehicle insurance, personal care, and airline fares.  

I do not plot energy because it grossly distorts the left axis.

Bond Yields are up across the board on the news and the stock market is sinking once again.

In case no one noticed, the allegedly "data dependent" Fed ignored raging inflation for well over a year, even by their own pathetic measures that ignore housing and stock market bubbles.

This post originated on MishTalk.Com.

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