The June Consumer Price Index (CPI) data is out and the results are as equally startling as in May 2008. Let’s go through the same exercise as last month, only with less explanation. If you want more explanation of how I arrive at these numbers visit the May 2008 post.
One note that I did get questions about though: I am including December 2007 in these calculations otherwise we would not see the change during January 2008. If we were to start with the January 2008 we would only see the change from the end of January 2008 until now. By including the December 2007 figure we are able to account for the change since January 1, 2008.
The inflation so far for 2008:
Southeast = [ ( 212.324 – 203.457 ) / 203.457 ] * 100 = 4.36%
National = [ ( 218.815 – 210.036) / 210.036 ] * 100 = 4.18%
Average month to month change in 2008:
| National CPI | Southeast CPI | National ? | Southeast ? | |
|---|---|---|---|---|
| 12/2007 | 210.036 | 203.457 | ||
| 01/2008 | 211.080 | 204.510 | 1.044 | 1.053 |
| 02/2008 | 211.693 | 205.060 | 0.613 | 0.550 |
| 03/2008 | 213.528 | 206.676 | 1.835 | 1.616 |
| 04/2008 | 214.823 | 208.085 | 1.295 | 1.409 |
| 05/2008 | 216.632 | 210.006 | 1.809 | 1.921 |
| 06/2008 | 218.815 | 212.324 | 2.183 | 2.318 |
| Average | 1.463 | 1.478 | ||
Est. Southeast CPI = 212.324 + ( 6 * 1.478 ) = 221.192
Est. National CPI = 218.815 + ( 6 * 1.463 ) = 227.593
Estimated inflation for 2008:
Southeast = [ ( 221.192 – 203.457 ) / 203.457 ] * 100 = 8.72%
National = [ ( 227.593 – 210.036 ) / 210.036 ] * 100 = 8.36%
And you thought last month was scary.
