Media Contact: Stephen Cecchetti, (614) 292-9339
[email protected]
Written by Jeff Grabmeier, 614) 439-9033; [email protected]
JANUARY INFLATION FIGURES REASSURING, ECONOMIST SAYS
COLUMBUS, Ohio, Feb. 18 -- A moderation in the growth of consumer prices in January suggests that inflation is not a major threat to the U.S. economy, according at an economist at Ohio State University.
Stephen Cecchetti, professor of economics at Ohio State and former director of research for the New York Federal Reserve Bank, said the federal Consumer Price Index for January, released today, provides generally good news.
"I don't think inflation is about to take off," Cecchetti said.
The one-month increase in both the overall CPI and the CPI excluding food and energy was a modest 0.2 percent, in line with analyst's expectations, he said.
The CPI was helped by a relatively small increase in owner-equivalent rent of just one-quarter percent in January. "I continue to believe that the rise in housing prices will not feed into the CPI," Cecchetti said.
Another factor in holding the CPI in check was plummeting apparel prices. "The culprit here is women's and girls' apparel, which fell in price by 2.2 percent over the last month," he said. "It's hard to explain why there was such a big drop in prices in January, and it's not something that is likely to continue."
NOTE TO REPORTERS: For Cecchetti's full analysis of January inflation, please go to:
http://economics.sbs.ohio-state.edu/cecchetti/infupdate.htm
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