Deflation in November

This morning, the government reported that consumer prices fell 0.3% last month. The reason, of course, is the big plunge in energy prices.

The core rate, which excludes food and energy prices, comes in for a lot of ribbing but this is one of those times when it’s important. Food and energy prices can be very volatile and they may not reflect what’s really going on with most consumer prices. The core rate of inflation rose by just 0.1% in November.

Posted by on December 17th, 2014 at 9:08 am


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