Christopher S. Rugaber
Meltdown 101: Consumer price index, by the numbers
WASHINGTON — One benefit of the recession: The cost of living barely increased in May, the government said, particularly for those who don’t drive.
Gas was one of the few areas where prices increased last month, as the economic slump kept a lid on inflation. Prices at the pump rose a seasonally adjusted 3.1 percent, the government said.
Overall, the consumer price index increased 0.1 percent in May, after no change in April. Prices fell by 1.3 percent in the year ending in May, the steepest annual drop since April 1950.
Consumers are spending less, making it difficult for companies to raise prices. And with unemployment at a 25-year high and factories operating at record low levels, the economy has a lot of spare capacity. That means companies could ramp up production in the event of a recovery without having to spend a lot more on labor or equipment — spending that might normally lead to inflation.
The price of oil, though, rose to an eight-month high near $73 a barrel last week, though it has since fallen a bit and closed at $71.03 Wednesday.
That has pushed up gas prices for 50 straight days, to a national average of $2.679 a gallon, according to auto club AAA.
Prices have increased in other areas, too: Rents ticked up by 0.1 percent in May, the government said, while services that have remained strong through the recession — namely, health and education — also rose.
But most costs fell: Clothing and food prices both dropped by 0.2 percent, personal computers and related equipment fell by 1.6 percent, and tobacco dropped by 0.3 percent — after two months of steep increases connected to a hike in cigarette taxes.
Here are some other interesting details in the consumer price report, by the numbers.
INFLATION OR DEFLATION?
+0.1 percent: May change in the Consumer Price Index
-1.3 percent: The change in CPI during the year that ended May 31, the steepest annual decrease since 1950
+0.1 percent: May change in core CPI, which excludes food and energy — two areas where prices tend to be volatile
+1.8 percent: The change in core prices during the year ended May 31
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FOOD IS CHEAPER …
1 percent: Drop in fruit and vegetable prices
0.9 percent: Drop in meats, poultry, fish and eggs
0.5 percent: Drop in dairy and related products
0.2 percent: Drop in cereals and bakery goods
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… BUT DRINKING COSTS MORE
0.3 percent: May increase in prices for alcoholic beverages
3 percent: Increase in alcoholic beverage prices over the past year
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EAT OUT, OR STAY HOME?
-0.5 percent: May change in “food at home” prices
+0.1 percent: May change in food “away from home” prices
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TRAVEL BARGAINS
-1.5 percent: Last month’s change in airline fares
-18.5 percent: Drop in fares since the August 2008 peak
+0.1 percent: Last month’s change in prices for hotels and other “lodging away from home”
-6.8 percent: Drop in “lodging away from home” prices since a year ago
TAKE THE BUS
+0.5 percent: May change in prices for new cars
+1 percent: May change in prices for used cars
-1 percent: May change in prices for public transportation
MORE EXPENSIVE IN MAY
0.3 percent: Increase in medical care costs
0.5 percent: Increase in education costs
1 percent: Increase in prices for nonalcoholic beverages
0.6 percent: Increase in prescription drug prices
CHEAPER TECH, HEAT AND FOOTIE PAJAMAS
1.1 percent: Decrease in cost of information technology hardware and services
5.7 percent: Decrease in cost of natural gas
1.6 percent: Decrease in cost of infants’ and toddlers’ clothing
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