July 11, 2013

...AND CHEAPER...:

Prices for U.S. imports and exports fall in June (Reuters, 7/11/13) 

Import prices slipped 0.2 percent last month, dragged down by another month of declining costs outside of the fuels category. Petroleum prices rose 0.2 percent.

Prices for both imports and exports have fallen every month since March, the longest such streak since 2008 when the world was mired in a financial crisis.

The drop in prices last month for imported cars and other consumer goods could help some U.S. consumers. However, some economists are worried an environment of weak inflation could raise the specter of deflation. That would be very bad, as deflation entails a spiral of falling prices and wages which is very difficult for central banks to fight.

Posted by at July 11, 2013 7:49 PM
  

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