September 18, 2007


Wholesale Prices Fall by 1.4 Percent (MARTIN CRUTSINGER, 9/18/07, AP)

Wholesale prices fell in August by the largest amount in 10 months, reflecting a plunge in the price of gasoline and other energy products and the fourth straight month of falling food costs.

The Labor Department said Tuesday that wholesale prices fell by 1.4 percent last month, the best showing since a 1.5 percent fall last October. It was a much bigger decline than the 0.3 percent drop that had been expected and was led by a 6.6 percent plunge in energy costs, the biggest drop in more than four years.

Core inflation, which excludes food and energy, was also well under control, rising by just 0.2 percent. The good price performance should further ease concerns about inflation and give the Federal Reserve the leeway to cut interest rates to guard against the possibility of a recession.

...forget the masses; why do the ultra-rationalists at the Fed behave so irrationally in fighting the imaginary beast of inflation?

Posted by Orrin Judd at September 18, 2007 9:09 AM
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