December 28, 2011

BECAUSE YOU CAN'T PRINT TRILLIONS OF DOLLARS WITHOUT UNLEASHING HYPERINFLATION...:

Slowing Inflation Cheers Fed (JON HILSENRATH, 12/28/11, WSJ)

The slowdown has been apparent for months in some commodities. The price of copper is down 21% from a year earlier. Cotton is down 45%. Natural-gas prices continue to fall, and crude oil has retreated from peaks hit in April, though not as sharply as other commodities.

Now, more broadly, the Commerce Department's measure of consumer prices for November, released Friday, stood 2.5% above year-ago levels in November, down from year-over-year increases of 2.7% in October and 2.9% in September. A less volatile measure excluding food and energy, watched closely by the Fed, rose 1.7% from a year earlier.

Another closely tracked measure, the Labor Department's consumer-price index, has risen at a 0.8% annual rate in the past three months. [...]

Meanwhile, increases in labor costs remain muted. Hourly wages of private-sector U.S. workers were up 1.8% in November from a year earlier, before adjusting for inflation. And in the third quarter, overall labor costs for each unit of output produced by businesses outside farming--a measure that reflects both wages costs and productivity gains--were only 0.4% above year-earlier levels.



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Posted by at December 28, 2011 6:25 AM
  

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