The latest data from the BLS further confirms the low level of inflation in the U.S. A number of notable items that make up a large percentage of the CPI actually declined in 2013. Motor fuel (which has a weight of 5.68 out of 100) in the CPI declined 1.0%, Household furnishings (3.2) fell 2.2%. Medical equipment, non prescription drug prices, and recreational supplies (like sporting goods). The average price of DVDs fell nearly 10% last year.
Economist, Justin Wolfers provides a light, but informative closer look at the recent CPI numbers and cookie versus cupcake inflation:
It's striking how much cupcake inflation differs from cookie inflation which differs from donut inflation. pic.twitter.com/fsFT17yMFr
— Justin Wolfers (@JustinWolfers) January 16, 2014