Inflation returns - CPI up .5%, Core up .4% for March

Consumer Prices in March Rise Fourth Straight Month (Update1)
April 14 (Bloomberg) -- Prices paid by U.S. consumers in March rose 0.5 percent, a fourth straight increase, boosted by rising energy, transportation and clothing costs. Excluding energy and food, core prices climbed the most in two years.

The increase in the consumer price index followed a 0.3 percent gain in February, the Labor Department said in Washington. Core prices jumped 0.4 percent, the largest rise since November 2001, and were 1.6 percent higher in the 12 months ended in March.

Rising demand and a recovering labor market may signal a faster pace of inflation for consumer goods later this year, as companies such as Kimberly-Clark Corp. and Procter & Gamble Co. pass along higher commodity costs. Energy prices have climbed the past several weeks amid concern over supplies. The suggestion of higher inflation drove up Treasury yields.

``The evidence is now compelling that the Federal Reserve's efforts at reflation have substantial traction,'' said Richard DeKaser, chief economist at National City Corp. in Cleveland. ``Disinflation is clearly behind us, and rising core inflation is now well established.''

Inflation is notorious difficult to stop once people's expectations change. Especially since Greenspan is unlikely to raise interest rates until after November.

What I can't understand is how long it's taken for inflation to even appear on the radar. Does anyone know what mix of prices are used to compute the CPI or other figures, or where the methodology can be found?