Prices Plummet Again
After November produced the biggest consumer price decline since government began tracking the measure back in 1947, December saw prices drop again in yet another sign of the cooling American economy.
America’s Consumer Price Index – a key measure of inflation – dropped in December by .7% after a record 1.7% plunge in November.
That puts the total CPI increase for 2008 at a tenth of one percent for the year, which is the smallest increase since 1952.
On the one hand that’s good because stuff is less expensive, meaning people might be more likely to buy it.
On the other hand, it’s less money going to businesses, which means less profits and fewer jobs.
Incidentally, Sic Willie had no idea there was a down side to deflation until Mrs. Sic explained it to him.
Seriously, he thought this whole prices plummeting thing was all good news.
Comments
By James the Foot Soldier on January 16th, 2009 at 2:37 pm
Anyone in guv’ment want to try to defend the hand out 5.8% COLA increases to social (in)security recipients?
no wonder amerika is bankrupt