Once again, the Right-Wing Corporate media, along with the Federal government, have confabulated a low inflation rate. Once again, they've selectively focused on only 1 number, the "core" CPI, while ignoring the overall monthly CPI increase of +0.7%. (which, if annualized, comes out to a yearly rate of increase of +8.4%.)
In fact, the overall Consumer Price Index has increased 3.05% in the 1st 5 months of 2007 alone. The annualized increase during the 1st 5 months of 2007 is +7.4%. The "tame" inflation rate during the last 1/2 of 2006 has been replaced by a rapid rise in 2007.
No doubt some will claim that inflation rises faster during the 1st 5 months of the year. However, the 3.05% rise in inflation during the 1st 5 months of 2007 is faster than during any previous year under Bush. The 1st 5 months of 2006 were the closest, with an increase of +2.9%. However, the January through May increase was only +2.1% in 2005, +2.6% in 2004, +1.44% in 2003, +1.75% in 2002, and +2.1% in 2001.
Below is a graph of the CPI from the Bureau of Labor Statistics. Note the rapid acceleration in recent months.
Inflation is clearly rising faster in 2007 than it has during any other time since 2001. The assessment that inflation is "under control" is not just "spin." It is factually wrong.
Economic Populist Forum