Producer prices fell in September with lower energy prices, and dropped for the second consecutive month, the Labor Department reported Wednesday.
The Producer Price Index (PPI), which measures prices at the factory door and inflation pressures before they reach the consumer, decreased in September to 0.4%. The drop was in line with analysts’ expectations. September’s decline follows a 0.9% drop in August and a 1.2% increase in July — a month that marked a 27-year high.
Falling energy prices was the key to easing price pressures as highlighted by the stark contrast of Tuesday’s Nymex crude-oil price of $78.63 per barrel compared to a record high near $147 per barrel in July. Energy prices fell 2.9 percent in September after tumbling 4.6 percent in August — a month that marked the biggest drop in nearly two years.
Continue reading Producer prices fall for second straight month
Inflation eased to 5.4% in the past year, as consumer prices declined 0.1% in August and marked the first decline in nearly two years, according to a Labor Department report released Tuesday.
With inflation’s decline, some economists said the path was paved for a potential interest rate cut after the Federal Reserve’s monthly meeting on Tuesday.
“This frees the Fed’s hands to cut rates, if they deem that to be the right move later today,” said Mark Vitner, senior economist at Wachovia.
“If inflation continued to accelerate, it would make it very difficult for the Fed to cut interest rates,” said Vitner. “But now, if they need to cut interest rates, they will do it.”
Continue reading Inflation eases to 5.4% as consumer prices fall 0.1%
The US Inflation Calculator website has been updated with the latest Bureau of Labor Statistics (BLS) data released Tuesday, September 12. The newest figures show consumer prices rose 5.4% in August from a year ago. On a monthly basis, the Consumer Price Index fell 0.1%.
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
Read Inflation eases to 5.4% as consumer prices fall 0.1% for an in depth look at the released Labor Department data.
Federal Reserve Chairman Ben Bernanke said inflation was on track to ease later this year and next. Bernanke made the comments Friday at an economic conference before leading economists and policymakers in Jackson Hole, Wyoming.
Decreasing commodity prices, increased stability of the dollar, and slower growth were cited reasons for the improved outlook.
"If not reversed, these developments, together with a pace of growth that is likely to fall short of potential for a time, should lead inflation to moderate later this year and next year," Bernanke said.
Continue reading Fed chief Bernanke forecasts moderate inflation
The Producer Price Index (PPI), which measures prices at the factory door and inflation pressures before they reach the consumer, jumped 1.2% in July and 9.8% in the past year, according to a Labor Department report released Tuesday.
The 1.2% climb was double the rate economists expected and follows a 1.8% jump in June and a 1.4% rise in May. Core producer prices, which exclude food and energy, jumped 0.7 percent in July after a 0.2 percent June increase.
The rise in wholesale prices marks the highest annual rate since June 1981, or 27 years.
Continue reading Growing inflation: Wholesale prices jump to highest annual rate in 27 years
The annual inflation rate climbed to 5.6% in July — the fastest growing rate in 17 years, according to Labor Department figures released Thursday.
Consumer prices jumped 0.8% in July, nearly double the level economists expected. It follows June’s 1.1% increase.
The biggest culprit in inflation’s increase was energy costs, which jumped by 4% on a monthly basis and 29.3% annually. On a somewhat optimistic note, the latest July figures include data collected only from the first three weeks, and do not account for the most recent commodity price decreases, like those seen in oil and gas.
“Energy prices do seem to be coming down a bit. So I’m hopeful that going forward we won’t see as much of an increase,” said UCLA economist Lee Ohanian. “That decline will translate into lower gasoline prices and lower prices across the board.”
However, the core CPI, which excludes volatile food and energy items, still experienced a 0.3% and 2.5% annual increase. Economists expected a 0.2% increase.
Continue reading Inflation fastest in 17 years, rate climbs 5.6%
The US Inflation Calculator economic site now has a newly updated Inflation Rates information section that includes a chart, graph and table of monthly and annual inflation rates for the last decade.
The rates of inflation come directly from the latest Consumer Price Index (CPI) data published by the Bureau of Labor Statistics (BLS). The chart and graph offers an excellent visual tool for seeing how rates have changes throughout the years.
In economics, the inflation rate is a measure of inflation. In this case, the rate of increase of the Consumer Price Index. The rate of increase/decrease in the purchasing power of dollar is about equal.
Continue reading New Inflation Rates with Chart, Graph and Table