Consumer Price Index Jumps During March 2005

Earlier during the Spring 2005 semester, we compared community college tuition rate increases with the current inflation rate. We have discovered that for the last few years, tuition rates have increased much faster than other consumer prices.

The Consumer Price Index (CPI) rose 0.6% during March of 2005. 0.6% is six-tenths of one percent. Note: core-CPI (which excludes food and energy) increased 0.4% during March 2005.

If we assume the March 2005 CPI increases remain constant for the next twelve months, then the yearly inflation rate will approximate 7.2%. 7.2% is more than double the current inflation rate of about 3%.

   "Consumer prices jumped 0.6 percent in March, 
    according to the Labor Department, the biggest 
    surge in five months as the costs rose sharply 
    for everything from energy and food to clothing, 
    hotel rooms, airline tickets and medical care."
   --AP Wednesday, 20 April 2005 Graph of Retail Prices (March 2004 to February 2005) Consumer Price Index Summary  |  Inflation Calculator

Creator: Gerald D. Thurman []
Created: 20 April 2005

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