Posted on 01/15/2015 9:39:57 PM PST by blam
Myles Udland
January 15, 2015
The crash in oil prices might be good for consumers, but it's terrible for inflation data.
The US Bureau of Labor Statistics is set to release the consumer price index on Friday morning at 8:30 ET. The index is a measure of consumer prices, and the most popularly cited measure of inflation.
Expectations are for headline inflation to fall 0.4% in December compared to the prior month, which would be the largest month-on-month decline since December 2008.
Compared to last year, headline inflation is set to rise 0.7%.
"Core" inflation — which strips out the cost of food and energy and is the number more closely watched by economists — is expected to rise 0.1% in December and 1.7% when compared to last year.
Most of this decline in inflation is expected to be a result of the drop in oil prices, which has in turn sent gas prices to multiyear lows.
In a note to clients ahead of the report, Brian Jones at Societe Generale wrote that, "Reflecting a projected 12.1% dive in seasonally adjusted gasoline pump prices, the CPI energy cost gauge likely fell by 5.4%, shaving one-half percentage point off the headline measure last month."
And so decline in gas prices will be responsible for all of the decline in the headline index come Friday morning.
(snip)
(Excerpt) Read more at businessinsider.com ...
here comes the collapse, and with it the Occutards looting, under Barry’s orders. Welcome to Thunderdome, with Queen Mooch as Tina Turner
Read the article and it absolutely makes no sense. The headline is contradicted by the article.
...and a thousand answers.
The progressive Fed and the Keynsian religion in academia have everyone fearing deflation.
Deflation is only a problem because of the huge government and private debts our leaders and the Federal Reserve have foisted on the nation.
In a world with real money, deflation would be a natural occurrence as average citizens would receive all the benefits of steadily increasing productivity and technology causing steadily lower prices.
And it will mean lower COLAs for SS and federal pensions next year.
Not if you view inflation as something good.
It also means artificially lowered interest rates that reduce debt servicing costs. It makes me think that this more manipulation by the Fed and the banks.
“The headline is contradicted by the article.”
I agree... Why would low inflation be bad for the general population?
Why isn’t food prices coming down when energy costs are lower?
As Rosanna Rosanadanna once said: “never mind.”
Thank God for cheap gas to fill the car! It’s been a long time coming. I’m still looking for $1.35/gallon.
1.84 a gallon today.
Deflation is bad for big government.
“but economists, including Janet Yellen, President Obama’s nominee to lead the Fed starting next year, have long argued that a little inflation is particularly valuable when the economy is weak”
It’s good for the government because inflation is indeed a tax. However they have been lying about inflation all along. The inflation rate has been going up. Ask anyone who has been to the grocery store as of late...
You can bet if Obama and his elk want inflation, it’s bad for the people...
In the past, the cost of gasoline has not been factored in, when considering cost of living raises for S.S. recipients.
Of course gov. could decide to make it a factor next time.
I worked as a courier in 2003, and gas was $1.35/gallon. Back then I thought the price was outrageous. I would love for it to drop to that price now and am hoping for it.
Major reason the economy has stalled for so many years is the cost of gas and food. Middle America and below has suffered enough with high gas prices. Nothing left over to spend and help the economy, just pay bills and get a little gas in the car.
Now we need food prices to drop too. I’m shocked every time I go to get groceries, prices seem to rise week to week. This has been going on for several years now. It’s time for the “average Joe” to get relief. Only then will we see the economy bounce back to a real normality, and the regular citizen participate once again in an active way.
Sustained prices government dumping favored pensions, salaries, EBTs into favored business, , [despite] lower oil and [despite] ExtortionCare wallet shutdown .
percentage of above= layoffs.
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