vendredi 16 janvier 2015
Consumer Prices in U.S. Drop by Most in Six Years as Fuel Slumps
Posted on 06:24 by nice news
The cost of living in the U.S. declined in December by the most in six years, reflecting a plunge in energy costs that’s keeping inflation from rising toward the Federal Reserve’s goal.
The consumer-price index dropped 0.4 percent, the biggest decline since December 2008, after falling 0.3 percent in November, a Labor Department report showed Friday in Washington. The median forecast of 89 economists surveyed by Bloomberg called for a 0.4 percent decline. Excluding volatile food and fuel, the so-called core measure was unchanged, failing to rise for only the second time since 2010.
The biggest drop in clothing costs since 1998 combined with falling air fares and cheaper new and used cars signal the deceleration in inflation is spreading beyond energy as Japan and Europe are in or near a recession and some emerging markets cool. Sustained broad-based price declines test Federal Reserve Chair Janet Yellen’s view that the drop in fuel won’t reverberate through the economy.
“It’s going to take a little bit of time for the pass-through from lower energy prices to work its way into core prices, but I think core inflation’s likely to slow somewhat in the near term,” Gus Faucher, an economist at PNC Financial Services Group Inc. in Pittsburgh, said before the report. “It’s pushing inflation further below the Fed’s target.”
CPI estimates in the Bloomberg survey ranged from a 0.8 percent drop to a 0.1 percent advance.
Core Rate
The unchanged reading in the core gauge followed a 0.1 percent rise in November. Economists had forecast a 0.1 percent gain, according to the survey median.
Overall consumer prices rose 0.8 percent in the 12 months ended in December, the smallest year-to-year gain since October 2009. They were up 1.3 percent the prior month. The core measure increased 1.6 percent from December 2013 after climbing 1.7 percent.
The consumer-price index dropped 0.4 percent, the biggest decline since December 2008, after falling 0.3 percent in November, a Labor Department report showed Friday in Washington. The median forecast of 89 economists surveyed by Bloomberg called for a 0.4 percent decline. Excluding volatile food and fuel, the so-called core measure was unchanged, failing to rise for only the second time since 2010.
The biggest drop in clothing costs since 1998 combined with falling air fares and cheaper new and used cars signal the deceleration in inflation is spreading beyond energy as Japan and Europe are in or near a recession and some emerging markets cool. Sustained broad-based price declines test Federal Reserve Chair Janet Yellen’s view that the drop in fuel won’t reverberate through the economy.
“It’s going to take a little bit of time for the pass-through from lower energy prices to work its way into core prices, but I think core inflation’s likely to slow somewhat in the near term,” Gus Faucher, an economist at PNC Financial Services Group Inc. in Pittsburgh, said before the report. “It’s pushing inflation further below the Fed’s target.”
CPI estimates in the Bloomberg survey ranged from a 0.8 percent drop to a 0.1 percent advance.
Core Rate
The unchanged reading in the core gauge followed a 0.1 percent rise in November. Economists had forecast a 0.1 percent gain, according to the survey median.
Overall consumer prices rose 0.8 percent in the 12 months ended in December, the smallest year-to-year gain since October 2009. They were up 1.3 percent the prior month. The core measure increased 1.6 percent from December 2013 after climbing 1.7 percent.
Consumer Prices in U.S. Drop by Most in Six Years as Fuel Slumps
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