rssPrices for Consumer Goods Fall for Second Straight Month
Thursday, June 17, 2010 at 1:04 pm
- 12 Comments
The prices for consumer goods fell for a second straight month, the Bureau of Labor Statistics reported today — meaning the second straight month of slight deflation. The Consumer Price Index tracked down 0.2 percent from April to May, with the index increasing 2.0 percent in the past year.
Deflation is not really a concern at the moment, though, since the decline is due entirely to falling energy prices. Gas in particular took a dive in May, with prices dropping 5.2 percent. Core inflation — a measurement leaving out energy and food prices, which tend to fluctuate more — increased a measly 0.1 percent month-to-month, growing 0.9 percent year-on-year. That is the lowest rate since 1966.
So what does the report mean? Mostly that concerns about imminent inflation are overwrought. Were the CPI to show strong growth, indicating increasing inflation, it would put pressure on the Federal Reserve to raise short-term interest rates.
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12 Comments
Pingback posted June 17, 2010 @ 1:29 pm
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Pingback posted June 17, 2010 @ 3:19 pm
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Pingback posted June 17, 2010 @ 5:32 pm
[...] CPI declined 0.2 percent this month while “Core inflation — a measurement leaving out energy and food prices, which tend to [...]
Comment posted June 17, 2010 @ 5:53 pm
But but…hyper-inflation is going to kill us!!! (everyone circa Feb. 2009)
Pingback posted June 17, 2010 @ 7:13 pm
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Pingback posted June 18, 2010 @ 1:26 am
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Pingback posted June 18, 2010 @ 8:09 am
[...] CPI declined 0.2 percent this month while “Core inflation — a measurement leaving out energy and food prices, which tend to [...]
Pingback posted June 20, 2010 @ 6:44 am
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Pingback posted June 23, 2010 @ 11:03 pm
[...] less so. This month, the FOMC notes that underlying inflation is declining — for the past two months, there has technically been price deflation. All in all, not a particularly comforting [...]
Pingback posted June 25, 2010 @ 9:06 am
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Pingback posted July 20, 2010 @ 12:55 am
[...] Prices for Consumer Goods Fall for Second Straight Month « The … [...]
Pingback posted July 25, 2010 @ 7:33 am
[...] Prices for Consumer Goods Fall for Second Straight Month « The Washington Independent [...]
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