May CPI & Beige Book
Fed Beige Book: Full Report
"Economic activity continued to expand" in all 12 Federal Reserve districts, "but there were signs of deceleration."
"Concerns about high or rising costs were expressed by business contacts across the country... High energy costs were fueling price increases in manufacturing and, to a much lesser extent, retail. Reports of costs being passed forward varied considerably but were more prevalent than in the last Beige Book."
"Labor markets continued to tighten, with more Districts reporting employers having difficulty finding skilled workers. Wage pressures remained moderate overall, with the exception being workers with hotly demanded skills."
"Consumer spending continued to increase, but district reports suggest that the growth rate slowed... High gasoline prices were cited by a few Districts as changing purchasing patterns or clouding the outlook for sales."
"Residential real estate markets continued to cool across much of the country with most Districts reporting slower homebuilding and sales of existing homes. "
May CPI +0.4% Full Report
Inside the number: Core CPI +0.3% for the 3rd straight month. 2006 Core CPI +3.1% annualized.
May (CPI-U) +0.5%, for the last 12 months: Transportation +9%, Medical Care +4.2%, Energy +23%.
The real story: 2006 CPI-U SAAR (Seasonally Adjusted Annual Rate) +5.2% vs +3.4% for all of 2005. 2006 Energy SAAR +30.8% vs +17.1% for 2005.
The core rate jumped on a +0.6% gain in owners' equivalent rent, which accounts for nearly 33% of the core CPI. The largest gain in owners' equivalent rent in 16 years. Core CPI ex-shelter +0.2%.
For an excellent post on the effect of owners equivalent rent see Dr. Dave at Macroblog
The median CPI +0.4% or +4.3% annualized. The median CPI does not exclude food and energy prices. Median CPI +3% in the past year, the fastest growth since late 2002.
"Economic activity continued to expand" in all 12 Federal Reserve districts, "but there were signs of deceleration."
"Concerns about high or rising costs were expressed by business contacts across the country... High energy costs were fueling price increases in manufacturing and, to a much lesser extent, retail. Reports of costs being passed forward varied considerably but were more prevalent than in the last Beige Book."
"Labor markets continued to tighten, with more Districts reporting employers having difficulty finding skilled workers. Wage pressures remained moderate overall, with the exception being workers with hotly demanded skills."
"Consumer spending continued to increase, but district reports suggest that the growth rate slowed... High gasoline prices were cited by a few Districts as changing purchasing patterns or clouding the outlook for sales."
"Residential real estate markets continued to cool across much of the country with most Districts reporting slower homebuilding and sales of existing homes. "
May CPI +0.4% Full Report
Inside the number: Core CPI +0.3% for the 3rd straight month. 2006 Core CPI +3.1% annualized.
May (CPI-U) +0.5%, for the last 12 months: Transportation +9%, Medical Care +4.2%, Energy +23%.
The real story: 2006 CPI-U SAAR (Seasonally Adjusted Annual Rate) +5.2% vs +3.4% for all of 2005. 2006 Energy SAAR +30.8% vs +17.1% for 2005.
The core rate jumped on a +0.6% gain in owners' equivalent rent, which accounts for nearly 33% of the core CPI. The largest gain in owners' equivalent rent in 16 years. Core CPI ex-shelter +0.2%.
For an excellent post on the effect of owners equivalent rent see Dr. Dave at Macroblog
The median CPI +0.4% or +4.3% annualized. The median CPI does not exclude food and energy prices. Median CPI +3% in the past year, the fastest growth since late 2002.
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