Tracking Inflation...

JIM LEHRER: Now, inflation.

The government's latest figures show prices made the biggest jump in any 12-month period since October 2008. But when gas and food are added, inflation feels even higher to most Americans. And that presents a dilemma for the Federal Reserve.

NewsHour economics correspondent Paul Solman reports as part of his ongoing coverage on making sense of financial news.As part of his continuing coverage of Makinul Solman reports on the growing rate of inflation and how Americans are dealing with the extra costo the government's latest figures, prices made the biggest jump in any 12-month period since October 200

Watch the full episode. See more PBS NewsHour.

Inflation: Food and Fuel Prices Escalating in Biggest Jump

Consumers continued to feel the pinch at grocery stores and gasoline stations in April as higher prices pushed up a widely used index of inflation to the fastest 12-month pace since the later part of 2008, according to government figures released yesterday.

The Labor Department said the consumer price index, the most widely used measure of inflation, was up 0.4 percent in April from March, and up 3.2 percent from a year earlier.

The 12-month figure represents the biggest jump in the index in any 12-month period since October 2008.

Analysts had forecast the same monthly rise but a slightly smaller increase for the year, at 3.1 percent.

Food and gasoline price rises accounted for most of the increases, with gasoline accounting for almost half of the month-to-month rise...

Food Prices and Gasoline Affect Household Budgets

The Labor Department said that the Consumer Price Index rose 0.5 percent in March, matching a 0.5 percent rise in February. Gasoline and food prices accounted for almost three-quarters of the increase, but outside of those two areas, prices remained subdued. In the last 12 months, the index has increased 2.7 percent.

The core index, which excludes food and energy, rose 0.1 percent in March, compared with a 0.2 percent rise in February. The core index rose 1.2 percent in the last 12 months.

With the rise in food prices and gasoline now averaging $3.82 for a gallon of regular unleaded, inflationary pressures are likely to continue to affect household budgets in the short term, economists said. “So if you don’t eat or drive a car, you are feeling little inflation,” the chief economist for PNC Financial Services, Stuart Hoffman, said."

Wow, who can live without eating or driving a car or truck? We are all feeling inflation!

http://www.bls.gov/news.release/cpi.nr0.htm

http://topics.nytimes.com/top/reference/timestopics/subjects/f/food_prices/index.html?inline=nyt-classifier

Here's another bit of news:

"Gasoline jumped 5.6 percent last month and has risen nearly 28 percent in the past year. Consumers paid an average price of $3.81 a gallon nationwide on Friday according to the travel group AAA.

Food prices rose 0.8 percent last month, the largest increase in almost three years. Prices for fruits and vegetables, dairy products, chicken and beef all increased. Coffee costs rose 3.5 percent.

Manufacturers, food processors and other producers are facing higher costs for oil, grains and other commodities..."

http://finance.yahoo.com/news/Food-and-gas-costs-push-apf-3561812738.html?x=0&sec=topStories&pos=1&asset=&ccode=

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