November 21, 2013

A DEFLATIONARY EPOCH:

U.S. Wholesale Prices Fall 0.2% (SARAH PORTLOCK, Nov. 21, 2013, WSJ)

U.S. wholesale prices fell in October while longer-run inflation pressures remained contained, a reflection of weak demand across the economy.

The producer-price index, which measures how much companies pay for everything from food to computers, declined 0.2% last month from September, the Labor Department said Thursday. That was largely due to falling energy costs. Core prices, which exclude the volatile food and energy components, rose 0.2%, in line with the soft readings in recent months.

"There is no inflation pressure now and none in the pipeline," said IHS Global Insight economist Michael Montgomery, pointing to Europe's "funk" and China's struggles to recover from its economic slowdown.

Posted by at November 21, 2013 5:56 PM
  

blog comments powered by Disqus
« THANKS W!: | Main | HOW DO YOU FILL A JEB-SHAPED HOLE?: »