The Labor Department reported that consumer prices rose 0.1 percent in March following no change in February and inflation certainly seems to be tame, at least when it’s measured by the government. From year ago levels, consumer prices are now 2.4 percent higher.
It’s funny to think that, as shown in the graphic below, year-over-year inflation now seems to be settling into the 2-3 percent range – the same level seen during 2002 to 2005 when the massive housing and credit bubbles were inflating.
Because recent increases in gasoline prices are not reflected in the latest data, energy prices were flat for the month but still sport hefty gains from a year ago – up 18.8 percent. Recall that the price of crude oil didn’t really start rising last year until late-May, so, there will be another couple months of big year-over-year increases, one of the major supports for the current headline number.
That most curious of all inflation statistics – owners’ equivalent rent – was down 0.1 percent in March and unchanged from a year ago. Somehow, housing costs are -0.6 percent lower than a year ago despite the constituent parts that would indicate otherwise as detailed in the latest BLS data.
![[Most Recent USD from www.kitco.com]](http://www.weblinks247.com/indexes/idx24_usd_en_2.gif)
Yep, housing is still in the doldrums – excess inventory and falling income would depress rent. Hi Tim, after recommendig your blog in my overview article on economics blogs recently I took the liberty to reference you in my piece “US Figures Stronger than Feared” – it’s towards the end under “So let’s sum this up: even though with >>> Greenspan’s loose monetary policies <<< the US has never managed 5% real growth year on year in living memory, and with the economy in the doldrums, they (the president himself!) are projecting the situation to further rapidly and uncontrollably to deteriorate."