Inflation in U.S. Wanes?
Posted on October 16th, 2008 by bile Tags: airline fares, Ben Bernanke, Ben S, Bloomberg Television, Department of Labor, energy, Federal Reserve, Federal Reserve System, food, inflation, John Ryding, New York, price inflation, RDQ Economics, United StatesThe cost of living in the U.S. was unchanged in September, restrained by declines in fuel costs, automobile prices and airline fares that show the slowing economy is starting to cool inflation.
The Labor Department’s consumer price index was unchanged after a 0.1 percent drop in August; economists had forecast an increase for last month. So-called core prices, which exclude food and energy, rose 0.1 percent, also less than forecast.
Today’s figures show that for the first time in two years, prices didn’t increase for two straight months. Waning inflation gives Federal Reserve Chairman Ben S. Bernanke scope to lower interest rates further as policy makers attempt to unfreeze credit markets.
“It’ll give the Fed a little bit of cover to cut rates when they meet next,” on Oct. 28-29, John Ryding, chief economist at RDQ Economics in New York, said in an interview with Bloomberg Television.
Does this look like a wane in inflation?
Oh… they mean price inflation. Well… that will come. The wave is coming. I’d like to be upset about the impending interest drop but at this point so much money has been injected and will be injected in the future… a 0.0% rate wouldn’t make much of a difference.
