The Cost Of Living in the U.S Fell in October
As Reuters reported earlier this week consumer prices fell in October. It means that the cost of living unexpectedly fell in the U.S. last month. It could be a sign that at least some of the inflationary pressure is starting to subside. For comparison purposes: a year ago overall consumer prices rose by 3.5%.
Earlier this week the Labor Department indicated that prices dropped 0.1 percent in October. This happened for the first time in four months. Americans paid less for new cars and gasoline (a drop of about 3.1% in gas prices.) Economists predict the fuel prices may be falling further this month. However, prices outside of food and energy (clothing prices, for example) increased by approximately 0.4%. This indicated a small increase in overall prices.
Another good piece of news was a separate report by the Labor Department that showed weekly earnings rising 0.3 percent in October. Inflation was already accounted for in this number. A separate report from the Feds showed that industrial production rose 0.7 percent in October. These results beat any economists’ expectations.
Hopefully, all of the above will take some pressure off American households right before the Holiday season, promoting consumer spending and boosting the economy just a notch. But in spite of some positive economic indicators, there is still a concern for the recovery which mostly depends now on what happens in Europe.
I have little faith in this type of index. Especially when they quote values like 0.1%. Statistically they will operate with a +/- margin of error of more than that so the figures are meaningless when they are this small.
You only have to speak to an average member of the public to know that the cost of living is increasing and household incomes are getting squeezed to breaking point.
Hmmm, I'm with Kris on this one. Food costs are increasing, and they form a large part of a household budget.
Hopefully the cost of living stays down, but gas prices have been rising again!
I don't think anyone told Kroger that prices were supposed to go down- they are getting more and more expensive!!
It is nice to see the cost of living went down but I doubt it will stay that way for long.
Unfortunately, it's only going to be temporary. It's only a matter of time before the whole oil thing starts dragging prices up again. The worst part is that household income really hasn't recovered from the recession.
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