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US prices drop for first time since 1955
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| Contributor | Scott³ |
| Last Edited | Scott³ Apr 16, 2009 01:04pm |
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| Category | News |
| News Date | Wednesday, April 15, 2009 07:00:00 PM UTC0:0 |
| Description | Financial Times.
"Prices in the US fell in the year to March, marking the first annual decline since 1955, while there were further signs that the pace and severity of the US downturn is easing in some sectors.
Consumer prices fell 0.4 per cent over the year to March, the labour department said yesterday, and dipped 0.1 per cent last month from February owing to weak energy and food prices. The drop in prices has lessened pressure on consumers who have seen their wealth savaged by the recession.
But core prices, which exclude food and energy and are the measure by which economists judge the risk of general deflation, rose 0.2 per cent from February and were 1.8 per cent higher than in March 2008.
“The economy is suffering from disinflation but not outright deflation pressures in the goods and services sectors,” said Alan Ruskin, strategist at RBS Greenwich Capital.
Ben Bernanke, chairman of the US Federal Reserve, said on Tuesday that he expected inflation to remain low for “some time”.
There were also hints yesterday that the recession is becoming less ferocious in some parts of the country. The Fed’s “beige book”, a collection of anecdotal evidence from its dozen regional banks, said that five had seen a “moderation in the pace of decline, and several saw signs that activity in some sectors was stabilising at a low level”
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