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
Producer prices fell for the fifth consecutive month in December, as tumbling energy prices again led the decline, according to a Labor Department report released Thursday.
The Producer Price Index (PPI), which measures prices at the factory door and inflation pressures before they reach the consumer, fell 1.9%.
The December drop was in line with many expectations, yet slightly lower for other economists who forecasted a fall matching November’s 2.2% decline. The index registered its biggest monthly decline ever in October by falling a record 2.8%.
"The recession will continue through most of the year, and in this environment, producer prices can only move downward," Sal Guatieri, an economist at BMO Capital Markets in Toronto, was quoted at Bloomberg.
The energy index fell 9.3 percent in December after plummeting 11.2% in November and 12.8% in October, which set a 22-year record. Crude goods fell 5.3 percent compared to November’s 12.5% decline and October’s 18.6% drop. Continue reading Producer prices fall 1.9% in December, driven by lower energy costs
Minutes taken during the closed-door Federal Reserve December 15-16 meeting paint a darker than expected picture for the economy, with further contraction and rising unemployment on the horizon.
At the conclusion of its historic meeting, the Federal Open Market Committee (FOMC) slashed rates to a record low of between zero and 0.25%. The minutes, which provide much more detail and are always released several weeks after the official meeting, cite specific expectations reaching into 2009 and 2010. Continue reading Fed December minutes paint darker economic picture, lower inflation
The Federal Reserve aggressively lowered its benchmark federal funds rate to a range of between zero percent and 0.25%, and said it would "employ all available tools to promote the resumption of sustainable economic growth."
Slashing the overnight lending rate by such a degree was an unexpected Fed move. Most everyone had expected a 0.5% cut from its prior 1%. The rate is now at its lowest level since the government started keeping records in 1954.
"It’s a highly unorthodox and creative step," Michael Woolfolk, senior currency strategist, at the Bank of New York-Mellon in New York told Reuters. "We think it’s the best possible move for the U.S. consumer and for the financial market."
The announcement was made by the Federal Open Market Committee (FOMC), who released the following statement: Continue reading Fed slashes rates to record low, zero to 0.25%
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%
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%.
Greatly reduced inflation pressures and a desire to spark some life into the economy has almost everyone expecting the Federal Reserve to cut its benchmark overnight interest rate from 1% to 0.50%, marking the lowest level on records dating to July 1954.
Plummeting energy prices have taken the sting out of inflation since crude prices tumbled off their record peak near $147 per barrel in July — also when inflation was at its highest for the year. New York crude-oil for January delivery settled to $46.28 a barrel, falling $1.70 on Friday.
Consumer prices dropped a record 1% in October. The Labor Department reports on Tuesday the November CPI, which is the most watched government inflation barometer. Economists expect another record decline to 1.4%. Add in Friday’s report by the government showing producer prices fell to 2.2% and the Fed has an enormous green light to lower rates with little regard for inflation. Continue reading Fed seen lowering rates toward zero without inflation worries
Producer prices fell sharply in November as energy prices plunged for the fourth consecutive month, the Labor Department reported Friday.
The Producer Price Index (PPI), which measures prices at the factory door and inflation pressures before they reach the consumer, fell steeper than expected to 2.2%. Economists had pegged a predictive 2.0% rise. The index registered its biggest monthly decline ever in October, falling a record 2.8%.
Plummeting energy prices again led the way in dragging prices down. The energy index fell 11.2% after a 12.8% drop in the previous month which set a 22-year record. Crude goods declined 12.5% following a 18.6% drop in October.
The consecutive declines further highlights free-falling crude-oil prices, which closed Thursday in New York at $47.98 a barrel — a far distance from its record highs near $147 per barrel in July when inflation peaked.
Continue reading Producer prices drop 2.2% in November
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 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%