Inflation Update

The Consumer Price Index for Urban Consumers (CPI-U) for May of 2009 is 213.856. The annualized inflation rate computed from this number is -1.28%.

This is an indicator of deflation. In other words, the prices of good and services have fallen and in May certain consumer prices were lower than they previously were.

To put this into perspective, this is the lowest annualized rate since the -2.08% of January 1950.