Inflation remained mild again during 1985, (EXCERPT), Monthly Labor Review Online, April 1986

Inflation remained
mild again during 1985

Craig Howell and Andrew Clem

The rate of inflation in the American economy continued to be moderate for the fourth consecutive year. For the 12 months ended in December 1985, the Consumer Price Index for All Urban Consumers (CPI-U) advanced 3.8 percent, about the same as during 1982-84. Once again, the rate of increase in the Producer Price Index (PPI) for Finished Goods was even lower than the CPI's, moving up only 1.8 percent over the same 12 months. (See table 1.)

As in 1984, small increases in prices for food, energy, and other consumer goods kept the all items CPI advance moderate. Although 1985 energy prices rose more than in 1984, the increase was still under 2 percent. The indexes both for food and for commodities other than food and energy slowed noticeably, to increases of less than 3 percent. However, several categories of consumer services, such as shelter, medical care, and education, continued to register above-average increases. The CPI for services other than energy rose 5.7 percent, approximately the same as in 1984.

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