Inflating Away My Bush Boom

From Holden:

The core inflation rate took its biggest jump in six years last month.

Wholesale prices rose 0.3 percent in January, driven up by big increases in the cost of new cars, cigarettes and alcohol, a development that could lead the Federal Reserve on a path toward steeper interest-rate increases.

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Widespread increases in a number of areas drove the core inflation rate, which excludes food and energy, up by 0.8 percent, the biggest increase in this area in more than six years.

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The big 0.8 percent jump in core inflation last month, the largest advance since a 1 percent surge in December 1998, was led by a 3.4 percent increase in the price of cigarettes. That was the biggest spike in tobacco prices since a 4.4 percent jump in April 2002.

The price of alcoholic beverages climbed 2.8 percent, the biggest one-month jump in nearly five years.

Prices for new passenger cars were up 1.2 percent, which was the biggest one-month increase since March 2003.