Inflation rate drops in Seattle in December
Seattle-area inflation fell to 1.65 percent in December from 3.43 percent in October, the be unconsumed opportunity it was measured, led by declines in fuel, food and clothing prices.
Gasoline prices locally were 41.6 percent bring down than in December 2007, according to the Bureau of Labor Statistics released Friday. Grocery prices were up 6.1 percent year over year but fell 1.5 percent compared with October. Clothing prices were 5 percent lower than in October and 5.7 percent unworthy of their level in December 2007.
Local area inflation peaked at 5.83 percent in June, as gasoline soared after $4 a gallon. But as pump prices have fallen, so has the local inflation rate.
The require to be paid of electricity against home practice also fell last month compared with October, though essential gas rose. Housing rose a scarcely sufficient 0.6 percent from the time of October, for a 5.3 percent annualized rate.
Nationally, inflation remain year logged its smallest advance since the early 1950s, fanning new fears that the country may face a dangerous bout of deflation.
For all of 2008, prices inched up 0.1 percent, the smallest increase since 1954. Although prices spiked during some summer months — as oil hit record highs and food prices marched upward — the self-importance threat of 2008 ended up fizzling.
And that’s a dose of welcome news to the strained pocketbooks of American consumers, who have cut back sharply on their spending under the negative forces of vanishing jobs, tanking home values, dwindling investment portfolios and a recession, now in its second year.
Average weekly earnings, after adjusting for inflation, rose 2.9 percent utmost year, a big improvement from 2007 whereas income cruel 1 percent, the government description showed.
Looking ahead, economists expect consumer prices testament continue to fall in addition the nearest several months. For all of 2009, some economists aforesaid it’s possible prices will have being flat or dip.
Falling prices sound like a gift at first — at least to consumers. But a widespread and prolonged decline be possible to wreak more havoc on the economy, dragging down Americans’ compensation, and clobbering already-stricken home and stock prices. Dropping prices already are hurting businesses’ profits, forcing them to slice chief city investing. and lay off workers.
Staff penman Drew DeSilver contributed to this report.
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