Results tagged “consumerpriceindex”

The consumer price index fell 1% in October, according to the Department of Labor. CNBC notes this drop is bigger than what Wall Street predicted (it's also the "biggest drop since the department began monthly data in 1947"): "The latest sign of rapidly declining prices, including for clothing and transportation as well as energy, implies a weakening economy no longer faces any inflation threat and could see deflation return if consumer demand keeps softening." Stocks are mixed, as the auto industry tries to convince D.C. to deliver an industry bailout--chief executives of Chrysler, Ford and Chevrolet will continue to make their case today.

Confirmation that it's costing more to buy your bread: Inflation is "running at the fastest pace in 17 years, which consumer prices rising 0.8% last month, twice what experts were expecting. The AP grimly reports: "It marked the third straight month of oversized inflation increases following jumps of 0.6 percent in May and 1.1 percent in June and left inflation rising by 5.6 percent over the past year, the biggest 12-month gain since January 1991." The increases were across the board, for "clothing, food, transportation and recreational products." The NY Times says that this news "suggests that a[n interest] rate increase could come sooner rather than later," because lowering interest rates might force more inflation.