The Fed released its latest report on inflation yesterday, and the good news is that it remains subdued. The Consumer Price Index rose by just 0.2 percent in April, or 1.8 percent on an annualized basis. The core index, stripping out the more volatile food and energy costs, rose by just 0.1 percent.
More interesting is the report from the Cleveland office of the Fed on how the prices of various items fared over the course of the month. Gas prices have been falling so quickly lately that they'd drop by 64 percent if they keep up their April pace for an entire year. Fruits and vegetables dropped at a 20 percent annualized pace, and women's apparel dropped at a 12 percent pace.
Nothing is rising in price nearly as fast as gas has been falling, but a few items did increase in April. The cost of baked goods went up 8 percent on an annualized basis, and - in sharp contrast to women's apparel - men's apparel went up nearly 15 percent.
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