Tag Archives: CPI

2008 inflation rate at 0.1%, slowest gain in 54 years for consumer prices

The annual rate of U.S. inflation plunged to 0.1% in 2008, with consumer prices driven down by falling energy prices. The cost of living dropped for Americans as prices dipped for the third straight month, and showed the slowest 12-month gain since 1954, the Labor Department reported Friday.

The Consumer Price Index (CPI), the most closely watched gauge for inflation, fell by 0.7% in December after dropping 1.7% in November. Economists had expected the number to come in at 0.8%.

"Overall inflation has already declined significantly and appears likely to moderate further," Fed Chairman Ben S. Bernanke said in a Jan. 13 speech in London that was reported on Bloomberg.com.

"At this point, with global economic activity weak and commodity prices at low levels, we see little risk of inflation in the near term."

Plummeting energy prices was the headliner again. The energy index fell 8.3% and led in the CPI’s decline by accounting for almost 90 percent of the decrease in the all items index. Continue reading 2008 inflation rate at 0.1%, slowest gain in 54 years for consumer prices

Inflation rates and CPI data updated for January 2009

The US Inflation Calculator is updated with the newest data provided by the Bureau of Labor Statistics (BLS) on Friday, January 16.

The annual rate of inflation in December crawled to just 0.1%, according to the government’s report. The declining trend began back in August when the rate was 5.4%. September followed with 4.9%, October at 3.7% and November at 1.1%.

The Consumer Price Index (CPI) declined 0.7% in December from the prior month. November consumer prices fell a record 1.7%.

In addition to the Inflation Calculator tool using the latest figures for calculation, the following pages have been updated: Continue reading Inflation rates and CPI data updated for January 2009

Consumer prices fall record 1.7%, inflation drops to 1.1%

Inflation for consumer products plummeted again during November as prices were pushed down again by free-falling energy costs. Consumer prices declined by a record level for the second consecutive month, the Labor Department reported Tuesday. The annual inflation rate is at 1.1% compared to the 3.7% increase in October.

The Consumer Price Index (CPI), the closely watched inflation barometer, fell in November by a seasonally adjusted 1.7% after October’s record 1.0% decline. Economists had expected a sharp drop between 1.3%-1.4%, which would have been a record itself. The latest figure marks the biggest decline since the government started keeping monthly data in 1947.

"This is scary stuff,” Mike Schenk, an economist for Credit Union National Association was quoted on MarketWatch. "We are teetering on the brink of a massive downward spiral. Deflation is a threat."

"I think we’re in a deflationary spiral that will probably go on until sometime next year," Thomas di Galoma, head of U.S. Treasury trading at Jefferies & Co. in New York was quoted at Reuters. "I think it will probably go on through the majority of 2009."

Falling prices is generally good news for consumers, but only to a certain point. Continue reading Consumer prices fall record 1.7%, inflation drops to 1.1%

Inflation rates and data updated for December 2008

US Inflation Calculator has been updated with the latest Bureau of Labor Statistics (BLS) figures released Tuesday, December 16 for the entire month of November.

The latest government report has November’s annual rate of inflation down to 1.1%, which is an enormous decline when compared to October’s 3.7%, September’s 4.9% and a rate of 5.4% in August.

On a monthly basis, the Consumer Price Index (CPI) declined 1.9 percent following October’s 1% decline. September was virtually unchanged while August dropped 0.1%.

The Inflation Calculator has been updated to use the latest figures for calculation, as have the following pages:

Consumer Price Index Data from 1913 to 2008

Current Inflation Rates: 1999-2008

Historical Inflation Rates: 1914-2008

Annual Averages for Rate of Inflation

For an in depth look at November consumer price changes, read Consumer prices fall record 1.7%, inflation drops to 1.1%.

 

’12 Days of Christmas’ items now total $86,609

The price tag to purchase your true love each gift from the repeated verses of the fabled "Twelve Days of Christmas" carol is now an eye-popping $86,609.

Startling and dismaying for the romantic at heart — especially so considering the price has increased an astonishing $8,509, or 10.9%, over last year, according to the 24th annual “Christmas Price Index” compiled by PNC Wealth Management.

Similar to the Labor Department’s calculated Consumer Price Index (CPI), which is the most watched government inflation barometer, the tabulated PNC CPI offers insights into rising (or falling) prices and the economy. However, while the government’s annual CPI dropped to 3.7% in October, the PNC CPI registers at 8.1%.

The biggest price killer was the seven swans a-swimming, coming in at $5,600 and accounting for most of the increase. Should lovers "forget" the swans?

Continue reading ’12 Days of Christmas’ items now total $86,609

Consumer prices fall record 1%, inflation drops to 3.7%

Consumer prices declined in October by a record level, the Labor Department reported Wednesday. The Consumer Price Index (CPI), which is the most watched government inflation barometer, retreated to 3.7% during the previous twelve months and follows a decline of 4.7% in September.

On a monthly basis, the index fell 1% to mark the largest one month decrease since publication of seasonally adjusted changes began in February 1947. Economists were expecting a 0.9% decline.

"We are moving into an environment where prices are falling across the board," David Resler, chief economist at Nomura Securities International Inc. in New York, said in an interview with Bloomberg Television. "That is going to continue. Deflation is spreading across the economy."

Continue reading Consumer prices fall record 1%, inflation drops to 3.7%

Inflation rates and figures updated for November 2008

The US Inflation Calculator website has been updated with the latest Bureau of Labor Statistics (BLS) data released Wednesday, November 19. The newest figures indicate that October’s annual rate of inflation declined to 3.7%. That compares to 4.9% in September and 5.4% in August. On a monthly basis, the Consumer Price Index (CPI) declined 1.0 percent. September was virtually unchanged while August declined 0.1%.

The Inflation Calculator has been updated to use the latest figures for calculation, as have the following pages:

Consumer Price Index Data from 1913 to 2008

Current Inflation Rates: 1999-2008

Historical Inflation Rates: 1914-2008

Annual Averages for Rate of Inflation

An in depth look at the released Labor Department data follows at Consumer prices fall record 1%, inflation drops to 3.7%.

Producer prices set record drop of 2.8% in October

Producer prices plunged in October for the third straight month and by a level never before on record, the Labor Department reported Tuesday.

The Producer Price Index (PPI), which measures prices at the factory door and inflation pressures before they reach the consumer, plummeted 2.8%. Forecasters were expecting a 1.9% reduction, which would have itself broke the last record one-month drop of 1.6% in October 2001, or right after the September 11 terrorist attacks.

Similar to September’s 0.4 % fall, diving energy prices were the key to October’s PPI decline. Energy prices plunged 12.8% in the month after falling 2.9% in September. That marks the biggest one-month drop since July 1986.

Continue reading Producer prices set record drop of 2.8% in October

Consumer prices flat, inflation eases to 4.9% in September

Consumers got a respite on inflation in September, the Labor Department reported Thursday. The Consumer Price Index (CPI), which is the most watched government inflation barometer, retreated to 4.9% during the previous twelve months.

While overall U.S. consumer prices remained virtually unchanged, food prices increased and energy prices tumbled. September’s 30-day standstill follows an August monthly drop of 0.1% and an annual inflation rate of 5.4%.

Falling energy prices combined with a slowing economy eased consumer prices those two months. Inflation began its most ugly uptrend in April. It peaked to a 17-year high of 5.6 percent in July, during a time consumer and energy prices were at their highest — oil reached a record near $147 per barrel.

"Consumer price inflation has gone dormant, as the recent abrupt slowdown in world economic growth has led to sharp declines in energy costs, while weak domestic demand is putting downward pressure on retail prices in many key markets," wrote Dr. Brian Bethune, chief U.S. financial economist for Global Insight.

Oil prices tumbled Wednesday, closing on Nymex under $75 per barrel for the first time in more than one year. With less costly oil, weaker import prices and falling producer prices, inflation in October is expected to ease further.

Continue reading Consumer prices flat, inflation eases to 4.9% in September

Inflation rates and figures updated for October 2008

The US Inflation Calculator website has been updated with the latest Bureau of Labor Statistics (BLS) data released Thursday, October 16. The newest figures indicate consumer prices (inflation) rose 4.9 in September from a year ago, compared to 5.4% in August. On a monthly basis, the Consumer Price Index (CPI) was virtually unchanged following a 0.1% decrease in August.

The Inflation Calculator has been updated to use the latest figures for calculation, as has the following pages:

Consumer Price Index Data from 1913 to 2008

Current Inflation Rates: 1999-2008

Historical Inflation Rates: 1914-2008

Annual Averages for Rate of Inflation

An in depth look at the released Labor Department data may be read via the article Consumer prices flat, inflation eases to 4.9% in September.