Thursday, December 15, 2005

Consumer Prices Plunge; Production Jumps - Yahoo! News


Who pays the writers to produce this drivel?

OK, so I don't pay $3.04 per gallon of gasoline like I had to do for about 4 weeks. I stilll pay the $3 per gallon of milk! This headline is very misleading. All of my other expenses haven't come down any. In fact all my expenses have gone up.


Consumer Prices Plunge; Production Jumps

By MARTIN CRUTSINGER, AP Economics Writer 9 minutes ago

WASHINGTON - A record plunge in the cost of gasoline pushed consumer prices down by the largest amount in 56 years in November while industrial production posted a solid gain.

The new government reports Thursday provided further evidence that the economy is shaking off the blows delivered by a string of devastating hurricanes. But analysts cautioned that the huge drop in consumer prices was overstating the improvement in inflation.

The Labor Department report showed the
Consumer Price Index fell by 0.6 percent last month, the biggest decline since a 0.9 percent fall in July 1949. It reflected a record fall in gasoline prices, which have been retreating since they surged to above $3 per gallon right after Katrina hit.

Meanwhile, the
Federal Reserve said output at the nation's factories, mines and utilities rose a solid 0.7 percent last month following a 1.3 percent rise in October. Industrial output had plunged by 1.6 percent in September, reflecting widespread shutdowns of oil refineries, chemical plants and other factories along the Gulf Coast.

No comments: