Consumer Price Index (CPI) August 2009

16 09 2009

Here is this morning’s press release of the August 2009.  It is a great example of how not to explain complex data.  Here are opening two paragraphs.

On a seasonally adjusted basis, the Consumer Price Index for all Urban Consumers (CPI-U) rose 0.4
percent in August, the Bureau of Labor Statistics reported today. The index has decreased 1.5 percent
over the last 12 months on a not seasonally adjusted basis.
The 0.4 percent seasonally adjusted increase in the CPI-U was driven by a 9.1 percent rise in the
gasoline index. This increase accounted for almost the entire advance in the energy index and over 80
percent of the overall increase. Despite the August increase, the gasoline index has fallen 30.0 percent
over the last 12 months.
On a seasonally adjusted basis, the Consumer Price Index for all Urban Consumers (CPI-U) rose 0.4 percent in August, the Bureau of Labor Statistics reported today. The index has decreased 1.5 percent over the last 12 months on a not seasonally adjusted basis.
The 0.4 percent seasonally adjusted increase in the CPI-U was driven by a 9.1 percent rise in thegasoline index. This increase accounted for almost the entire advance in the energy index and over 80 percent of the overall increase. Despite the August increase, the gasoline index has fallen 30.0 percent over the last 12 months.

In general, the CPI numbers are all over the place as a result of a rebounding economy.  It is also a great example of why we need to look at individual numbers and come up with an executive overview of what this means.

Over the next couple of days, I will add more analysis here as I can dig into the numbers in greater detail.  There is a ton of information here.

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