with price stability. Because stable prices are essential to maximum long-term economic growth and living standards, the …

with price stability. Because stable prices are essential to maximum long-term economic growth and living standards, the … first examines the behavior of inflation over the past year, showing that sharp increases in food and energy prices caused … most overall inflation measures to rise, while inflation in nonfood and nonenergy prices slowed. Second, he shows that …

From 1975 to 1980, inflation in core (nonfood and nonenergy) consumer prices rose sharply as crude oil prices more than … tripled. Yet, as crude oil prices quadrupled from late 2001 to 2007, core consumer price inflation remained essentially flat …

price changes. The rationale is that unusual changes, such as the 14.2 percent increase in energy prices last year (December … to December) or the 18 percent jump in tobacco prices from November to December 1998, are unlikely to be related to the …

potential for deflation have noted the sharp contrast between goods and services prices. Excluding food and energy, goods prices … nonenergy services prices rose nearly 2½ percent last year. Moreover, goods inflation has fallen sharply over the past decade or …

goods. For example, inflation in intermediate goods prices rose from 2.6 percent annually in the first half of 1994 to 7 … less than 3 percent. Many analysts are concerned that recent increases in the prices of crude and intermediate goods may be … expected to move through the production chain, leading to increases in consumer prices. A review of basic economic theory …