http://www.bloomberg.com/news/2014-10-22/consumer-prices-in-u-s-rise-0-1-as-inflation-remains-muted.html
The cost of living in the U.S. barely rose in September, restrained by decelerating prices for a broad array of goods and services that signal the Federal Reserve can keep interest rates low well into 2015.
The consumer-price index climbed 0.1 percent after decreasing 0.2 percent in August, a Labor Department report showed today in Washington. Over the past year, costs increased 1.7 percent, the same as in the 12 months through August.
While plunging fuel costs are one reason for the restraint in pricing, clothing retailers, medical-care providers and airlines are also among those keeping a lid on charges. With inflation falling short of the Fed’s goal, policy makers need not rush to raise rates even as the world’s largest economy shows no sign of succumbing to a slowdown in global growth.
“Inflation remains very tame,” said Jim O’Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, New York, and the top forecaster of the consumer price index over the past two years, according to data compiled by Bloomberg. “For now, it gives the Fed the green light to keeping monetary policy accommodative. Over the long haul, they’d prefer to see inflation go up a little.”
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