Plunging Energy Prices Cause Biggest Cost-Of-Living Drop In Six Years

[Purveyor]

Source: LA TIMES

Plunging energy prices last month led to the biggest decline in the cost of living in six years, keeping inflation well below the Federal Reserve's target and possibly complicating plans for the central bank to start raising interest rates, the Labor Department said Friday.

The Consumer Price Index declined 0.4% in December after falling 0.3% the previous month.

Last month's drop, which was in line with analysts' forecasts, was the biggest since the depths of the Great Recession in December 2008.

Falling oil prices were the main factor.

Read more: http://www.latimes.com/business/la-fi-consumer-price-index-inflation-oil-economy-20150116-story.html

[jwirr]

1. Now if we could get all the other vital items we need to survive to go back to the 1950s prices

we would be feeling the recovery. Food, housing, etc.

[nolabels]

3. I would be more happy if there was a transition to a sustainable economy

that could last a couple of decades

[jwirr]

6. Going to google that when I am done here. Thanks for the idea.

[mahatmakanejeeves]

2. CPI for all items declines 0.4% as gasoline prices continue to fall

From the source:

CPI for all items declines 0.4% as gasoline prices continue to fall

Consumer Price Index Summary
Transmission of material in this release is embargoed until
8:30 a.m. (EST) Friday, January 16, 2015 USDL-15-0018

Technical information: [phone] [e-mail] www.bls.gov/cpi
Media Contact: [phone] [e-mail]

CONSUMER PRICE INDEX - DECEMBER 2014

The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.4 percent in December on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 0.8 percent before seasonal adjustment.

The gasoline index continued to fall sharply, declining 9.4 percent and leading to the decrease in the seasonally adjusted all items index. The fuel oil index also fell sharply, and the energy index posted its largest one-month decline since December 2008, although the indexes for natural gas and for electricity both increased. The food index, in contrast, rose 0.3 percent, its largest increase since September.

The index for all items less food and energy was unchanged in December, following a 0.2 percent increase in October and a 0.1 percent rise in November. This was only the second time since 2010 that it did not increase. The shelter index continued to rise, and the index for medical care posted its largest increase since August 2013. However, these increases were offset by declines in a broad array of indexes including apparel, airline fares, used cars and trucks, household furnishings and operations, and new vehicles.

The all items index increased 0.8 percent over the last 12 months. This is notably lower than the 1.3 percent change for the 12 months ending November. The energy index has declined 10.6 percent over the span. In contrast, the 3.4 percent increase in the food index is its largest 12-month increase since February 2012. The index for all items less food and energy has increased 1.6 percent over the last 12 months, its smallest 12-month change since the 12 months ending February 2014.

[SoapBox]

4. I wonder when companies are going to drop their "fuel surcharge"?

[spinbaby]

5. Well, yes and no

Driving our cars and heating our house are significantly less expensive but I haven't noticed food prices going down at all.

[cstanleytech]

7. And I doubt you will. In fact rather than reduce

prices or pay their employees more they will probably just pocket it for company and or funnel it to those at the executive level as a "bonus".

[F4lconF16]

8. This is why we need to shift our society away from oil.

Otherwise, we will be entirely at the mercy of the oil suppliers and any sudden price changes (not that we aren't already).