US prices fall for the first time in 13 months

2811 Views 20 Replies 17 Participants Last post by Vergeltung, May 23, 2010

blackkitty

Discussion Starter · May 19, 2010

US prices fall for the first time in 13 months

US prices fell for the first time in 13 months in April, driven by lower petrol costs, official data has shown.

Consumer price index inflation fell 0.1% last month from March, said the Labor Department, surprising analysts who had expected a 0.1% increase.

On an annual basis, inflation in April rose by 0.9%, the lowest growth rate since 1966.

Analysts said the figures meant the US Federal Reserve would be in no rush to raise US interest rates.

Core inflation - which strips out the impact of volatile energy and food bills - showed prices remained unchanged in April for the second consecutive month.

Petrol prices declined by 2.4%, clothing costs fell 0.7% and food costs rose 0.2%. More...

Reactions: 1

1 - 20 of 21 Posts

OhioMan

· #2 · May 19, 2010

Now there is some good news!! I just wish more people could find jobs so they could buy things.

JUSTSURVIVEBABY

· #3 · May 19, 2010

Core inflation - which strips out the impact of volatile energy and food bills - showed prices remained unchanged in April for the second consecutive month.

What a Sham! Jeez not counting Energy and Food Prices I'm sure Glad My Chinese made crap didn't rise last month....Hope Not many People Put Much Stock in this BS.

Reactions: 5

Rascals

· #4 · May 19, 2010

Smoke and mirrors is all it is. I dont think they know what is the truth anymore anyway. Anything they say turns out to be a lie.

Reactions: 1

Vergeltung

· #5 · May 19, 2010

what a completely useless satistic. I mean, we get our food and energy for free, right? so why count that schitt?

Reactions: 1

aramchek

· #6 · May 19, 2010

Prices can fall, and you can still have inflation.

How, you ask?

Namely, if people's earning power is falling even faster than prices.

Reactions: 1

WSierra

· #7 · May 19, 2010

Oh wow! What exciting news! lol
One-tenth of one percent!
Soooo.. in theory, I can spend ten dollars... and save a penny!!
Then lose it when I buy a cucumber.
I'm just thrilled.
;-/

Reactions: 1

Freeholder

· #8 · May 19, 2010

All I know is that, a) I've been paying more for gas, b) I've been paying more for food
and c) I know better than to believe everything I read on the news or links posted on the internet.

Hot off the press, the earth is flat link: http://www.alaska.net/~clund/e_djublonskopf/Flatearthsociety.htm

Reactions: 2

Crusis

· #9 · May 19, 2010

The price of oil shouldn't even be included. It's so volatile that it completely skews the measurement of inflation.

If wages fall faster than prices, that's still deflation. That's the very nature of deflation.

Reactions: 1

aramchek

· #10 · May 19, 2010

That's the funny thing about how top-down/self-serving these definitions are for banksters, the Fed, etc.

But let's consider what inflation means to Joe Sixpacks: his buying ability declines.

Let's consider what happens to Joe Sixpacks if his wages fall faster than prices (which are also falling, but not as fast): his buying ability declines.

Crusis said:
If wages fall faster than prices, that's still deflation. That's the very nature of deflation.

TANSTAF1

· #11 · May 19, 2010

Gas is going down?

Vergeltung

· #12 · May 19, 2010

TANSTAF1 said:
Gas is going down?

no, d'ja even read it?

FOOD and ENERGY prices are excluded from the calculation. which, in most people with a brain, renders the statistic MEANINGLESS.

get it?

:

Reactions: 2

skud

· #13 · May 19, 2010

Ah, the latest from the Bureau of Lies and Deceit!

The CPI is a bogus measurement. It has been manipulated over time. Why? Because many government programs (i.e. Social Security) get cost of living raises every year, based on CPI.

There are many things that are screwy with this statistic - hedonics, product substitutions, etc.

If you want to learn about it, just Google something like - cpi explained hedonics

A great site to view an alternate from Gov statistics is http://www.shadowstats.com/

Reactions: 2

Grub

· #14 · May 19, 2010

Of course prices fell - the collapse of the euro is driving the value of the dollar up. Can anyone say deflation?

Reactions: 1

jond

· #15 · May 20, 2010

Houses have a long ways to fall still.
Look at the historical charts. Homes still have about 50% left to come back down to historical averages. And I would expect them to overshoot to the negative temporarily, so maybe 70% left to fall?
I would expect, adjusted for inflation, homes will fall a little every year for the next 30 years.

Oh, and let's not talk about when interest rates come back off 0%.
Who can afford a $300,000 house at 15% interest?????
Especially if after 5-10 years when everyone realizes they lose 1-2% a year in value.

IMO, this is the new normal.

ColoradoWildcat

· #16 · May 23, 2010

I'm for sure no economic expert, but I read somewhere that when consumer prices fall, its a really bad sign for the economy- meaning people aren't buying and the prices are reduced to get them to buy. Meaning things are getting desparate. Am I all wet on this one?

Steverino

· #17 · May 23, 2010

for the us economy, sustained deflation is a bad thing...

Reactions: 1

Flex

· #18 · May 23, 2010

ColoradoWildcat said:
I'm for sure no economic expert, but I read somewhere that when consumer prices fall, its a really bad sign for the economy- meaning people aren't buying and the prices are reduced to get them to buy. Meaning things are getting desparate. Am I all wet on this one?

You are correct. Deflationary spiral is a sure path to a long and bad economic depression.

Reactions: 1

Crusis

· #19 · May 23, 2010

If it's just for a month or two, it might reflect a change in energy costs or some other input. But if it's long term, that's not good at all. That reflects a loss of buying power on the part of the consumer, and tends to have a feedback loop resulting in ever increasing idling of factories. Not that we have many left.

luckyshot

· #20 · May 23, 2010

Vergeltung said:
no, d'ja even read it?

FOOD and ENERGY prices are excluded from the calculation. which, in most people with a brain, renders the statistic MEANINGLESS.

get it? :

Worth Repeating..

:

Reactions: 1

1 - 20 of 21 Posts

This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.