Prices Drop By Largest Amount Since 2008

December 17, 2014 0 Comments

The biggest fear of any economist and the greatest gift for anyone struggling in this economy, prices fell by the largest amount since 2008. Well, in monthly terms, at least.

And the component responsible for the largest drop in consumer prices? What else, other than gas prices… In the month of November, there was a 6.6%.

Here is what the BLS has to say:

The energy index declined for the fifth month in a row, falling 3.8 percent in November. The gasoline index continued to decrease sharply, falling 6.6 percent. (Before seasonal adjustment, gasoline prices fell 8.9 percent in November.) The fuel oil index fell 3.5 percent in November, its ninth consecutive decline. The gasoline index has fallen 10.5 percent over the last 12 months, and the fuel oil index has declined 10.1 percent. The index for natural gas also declined in November, decreasing 1.7 percent, but it has risen 3.2 percent over the last year. Electricity was the only major component index to rise in November; it increased 0.1 percent and has risen 2.8 percent over the past year.

This hasn’t seemed to have stopped increasing food prices:

The food index rose 0.2 percent in November after increasing 0.1 percent in October. The index for food at home rose 0.1 percent in November and has risen 3.4 percent over the past year. Indexes for major grocery store food groups were mixed in November, with three increases and three declines. The index for meats, poultry, fish, and eggs increased 0.6 percent in November after declining in October. The index for beef and veal rose 0.8 percent, its tenth consecutive increase. The index for nonalcoholic beverages rose 0.5 percent, and the index for other food at home increased 0.4 percent. In contrast, the fruits and vegetables index turned down, falling 0.7 percent in November after a 0.9 percent increase in October. The index for fresh vegetables rose 1.8 percent, but the fresh fruits index fell 2.9 percent. The indexes for dairy and related products and for cereals and bakery products both fell 0.2 percent. All six groups increased over the past 12 months, with increases ranging from 0.2 percent (cereals and bakery products) to 9.1 percent (meats, poultry, fish, and eggs.) The index for food away from home increased 0.4 percent in November, its largest increase since January 2012, and has risen 2.9 percent over the
past year.

There goes that 2% inflation target…

 

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