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U.S. consumer prices were flat in November as Americans paid less for cars and gasoline, while the 12-month inflation reading fell for the second straight month, which could give the Federal Reserve more room to help a still-weak economy.
The Labor Department said on Friday the Consumer Price Index was unchanged last month. Economists had expected an increase of 0.1 percent after a drop of 0.1 percent in October.
Prices rose 3.4 percent in the 12 months through November.
That is off from the 3-year high of 3.9 percent clocked in September, and Friday's report backs the view that the spike in inflation is subsiding.
Economists and investors see inflation cooling over the coming months, which could help convince the Federal Reserve to do more to bring down the country's 8.6 percent unemployment rate.
Earlier in the week, the Fed warned that turmoil in Europe presents a big risk to the U.S. economy, and policymakers left the door open to possible further steps to boost growth.
Fed officials are divided among those who think high unemployment and sluggish growth require more action and those who view the central bank's already-aggressive efforts as bordering dangerously on an invitation to inflation.
Most economists have said the Fed's next meeting on Jan. 24-25 would be the more likely occasion for any new moves to add to the U.S. central bank's already extraordinary push to bring down borrowing costs and help growth.
Food prices rose 0.1 percent, while gasoline fell 2.4 percent.
Outside food and energy, prices climbed 0.2 percent in November.
In a sign that could give pause to policymakers still concerned about inflation, core prices rose 2.2 percent in the 12 months through November, up from 2.1 percent in October.
The U.S. central bank has held overnight interest rates near zero since December 2008 and has bought $2.3 trillion in government and mortgage-related bonds in a further attempt to stimulate a robust recovery.
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Government LIARS all. IF fuel and groceries WERE added to the index the numbers would be VERY different. You can not fool the masses with your lies. Go food shopping lately, fill up your tank lately??????
What inflation? Home prices, which is your biggest expense is going down. Mortgage rates are lowest ever. Gas is cheaper than 2008. As deflation intensifies, you will see the price of oil, food, gold, silver, goods and services come down. Your salary will come down too!! Google for "deflationary crash" to understand why money supply which is all nothing but credit can deflate despite Bernanke's printing press. All prices around you are based on a borrowed money supply. Prices will come down when the money supply deflates.
What inflation?? Rigghht, for now there is virtually no inflation, but this is only TEMPORARY, I disagree with your argument on deflation despite bernankes printing press..where did you go to school?? Google university? If you believe that increase in the money supply with deflate inflation and interest rates, then u are sadely misinformed guy. ANY ECONOMIST OR PERSON EDUCATED IN BUSINESS WILL TELL U PLAINLY, THE MORE MONEY U PRINT, THE HIGHER INTEREST AND INFLATION RATES WILL RISE...THE ONLY REASON INTEREST RATES ARE LOW IS BECAUSE THE IDIOTS AT THE FEDERAL RESERVE ARE USING QUANTITIVE EASING (QE) TO KEEP INFLATION LOW. I DO AGREE WITH PRICES COMING DOWN ONCE THE MONEY SUPPLY IS DEFLATED..THERE IS ONLY ONE PROBLEM...THIS MONEY SUPPLY WONT GO DOWN...IT HAS BEEN HELD BY THE BANKS IN LIQUIDITY..WHAT U FAIL TO UNDERSTAND IS THE LOW INTEREST RATES THE CENTRAL BANK HAS KEPT...IS ONLY FOR LENDING TO US AND FOREIGN BANKS, NOT TO THE CONSUMER!! ITS CALLED THE DOLLAR BUBBLE...AND ONCE THIS BUBBLE BURSTS THEN U WILL HAVE HYPER INFLATION! THE ONLY DEFLATION IS THE DEVALUING OF THE US DOLLAR..THE MORE MONEY U PRINT...THE LOWER THE VALUE OF THE DOLLAR WILL BE... MIXED WITH HIGHER INTEREST RATES PLUS HYPER INFLATION... IT IS A RECIPE FOR DISASTER FOR THE US ECONOMY!! U THINK 2008 WAS A BAD "RECESSION"... THE ONE COMING WILL MAKE THE GREAT DEPRESSION LOOK LIKE A WALK IN THE PARK!!! THIS IDEA THAT THE CENTRAL BANK WILL SOMEHOW WAIVE A MAGIC WAND AND CREATE JOBS IS A @!$%#ING JOKE AND PEOPLE ARE STUPID TO BELIEVE IT!! WAKE UP PEOPLE, THE FEDERAL RESERVE IS THE PROBLEM AND A DISEASE FOR THE ECONOMY!!
HERE IS AN ARTICLE BASED ON FACTS ABOUT THIS, NOT OPINIONS:
"In America we have had recessions every four to six years since the beginning of the Republic. So by 2012 or 2013, we're going to have another one, and it's going to be much, much worse. Whether that's a depression or not I don't know but be very careful because America is getting deeper and deeper into trouble," he said.
What can the government do? Reverse the spending policies of the Obama administration, he says.
"We cannot quadruple our debt every four or five years. We cannot print staggering amounts of money every four or five years. So there's going to come time when we've shot all of our bullets, and it's going to be a big mess."
On top of hundreds of billions of dollars in stimulus measures the administration has rolled out, the Federal Reserve has pumped $2.3 trillion into the economy via quantitative easing, which are asset purchase from banks that critics describe as printed money with little backing that in the end threatens to push up inflation rates.
Government intervention won't work here as it hasn't elsewhere.
Japan refused to let troubled financial institutions go under in the early 1990s and as a result, spent two decades mired in sluggish recovery.
Scandinavia took the opposite approach when it ran into an economic downturn and today is healthy, Rogers points out.
The world's Central Banks recently launched a coordinated effort to make it easier for European banks to gain access to dollars, a move that seeks to stave off a credit crunch.
That's not going to work either, Rogers says.
"It's not going to solve the problem. What politicians try to do always is get to the other side of the next election. This is just going to delay the problem and make it worse in the end. It's going to make it worse because there is going to be higher inflation, higher interest rates, more currency turmoil and we're going to have a lot more problems."
Read more: Jim Rogers: US Falling Into 'Deeper Trouble,' Faces 2013 Depression
Why does MSNBC print lies? Food is up 25%, Fuel is up 40%, 28 million people are unemployed or underemployed. 80% of College Graduates in the last three years have taken jobs outside their degrees, Can you say "do you want frys with that"
I guess life is just rosy, I am not suffering too much. 1 in 5 children do not have enough to eat. 48% of Americans are considered in poverty, and all this in the most prosperous nation in the world. If that isn't a good reason for a Revolution I don't know what is.
took the words right out of my mouth! It's getting so bad that whatever is 2 for 1, half-off, buy one get one free....that's what's for dinner tonight. Insane. Came out of Publix with TWO plastic bags of regular foodstuffs... talking milk, bread, eggs, English muffins, a a few other items...$80!!!!
One thing that is in common with food and fuel...the absurd, wasteful, destructive, horrible gas mileage of CORN ethanol that yes, is be subsidized by the taxpayer. Gee whiz...CORN...a staple for cattle and humans. If they insist in ethanol...use KUDZU for crying out loud! The stuff grows 18 inches a day in summer...can't kill the weed.
ren....get a grip. You have the folks at BLS confused with the political hacks at Justice....BLS people have no axe to grind, they just collect and report the numbers. The cost to fill up the tank has been high for some time now....cpi reflects changes from one month to the next. Look it up, it's not nearly as bad as you seem to think
Grandfather never confuse crazies with facts. They live in the alternate republican radio/faux news fact free universe.
forget the corn ethanol gripe I just posted. How bout a Fed that prints worthless money at the speed of light...devaluing the dollar hence inflation. Pretty soon you'll need a wheel barrel of worthless greenbacks to get bread, eggs, milk.
Keep that printing press rolling Bernanke...you idiot.
I love going to the store every week and seeing prices go up every week. There is not slow down, just more price hikes week in and week out. Cheese has almost doubled, milk up 25%, beef almost double. When you don't want to buy one of the worst cuts of beef(chuck roast) because it is almost 5 bucks a pound says a lot! This use to be 2 bucks a pound and it take 8 hours to cook. Gound beef 80% fat at almost 5 bucks. Bacon is at 5 bucks a package...just crazy. I would say food is up close to 40% higher than two years ago. When it cost almost 3 bucks for one apple well, you are screwed. Thanks Obama!
What are you talking about, I still buy cheese for $4per #, wine for $6/1.5L, the best eggs are still $2.89, good bread is 2 for $4 or there abouts, total grocery bill up by about 10% over two years maybe. It ought to go up another 20% so we can afford to farm without illegal alien slave labor. Stop buying chips and soda fatso and grow a garden if you need to save a buck.
they are lying.!!!!!!! they are lying to us all.. i hope everyone see's what is really going on .. they are printing fake money and it is driving up the price of everything.. inflation is through the roof.. we are being played as fools fellow americans. these stories are propoganda.
48% of Americans living in poverty??? Cut the crap!
Actually, that's true according to the new numbers just out. It includes the gray area just above the fed line.
Dear God: Please tell us common folk the names of the food stores where these CPI folks check out grocery prices. They sure as hell a'int holdin' steady in the stores around here. I suspect they are also not factoring in the smaller sizes, such as 58-ounce half gallons (formerly 64 oz) of fruit juice, 48-oz "half gallons of ice cream, skinnier cereal boxes, etc., either.
Which inflation index is that? The one that includes or excludes the cost of food and fuels? Every time I go to the supermarket, the price of almost everything is slightly higher (or the price is the same, but the manufacturer reduced the net weight, AGAIN). Sure, gasoline went down for about a week, but in one day shot up again by 10-12 cents/gallon. So it all depends what day they do the gasoline survey. Meanwhile, my employer thinks I can go yet another year without a raise (up to 4 years now) because 'inflation is negligible'.
this article is only to make you feel better in hopes that you will go out and consume (spend) your money. the supply siders trickle down capitalist dont realize we are tapped out. sooner or later the politicians will be forced to go after the rich to pay for the wars and feed the masses. your greed will be your undoing as you snooker yourself into a corner with no shot.
Each month, when I buy a new car, I can see where cost of living has gone down. Thank heaven I don't need groceries.
This headline is so wrong it makes me want to write a letter to the editor asking for a job proofreading. It's not "inflation" that's not changed, it's the "cost of living" that's not changed. Inflation was, allegedly, -0.1% in October and 0.0% in November. So the rate of inflation changed. The fact the government vastly underestimates inflation also remains unchanged!
Yes it is unchanged. It was going up before and it's still going up, so there's no change in the upward movement. Doesn't that sound like it's "fair and balanced?"
Prices are just dead wrong. Inflation, cost of living, who cares, as prices of just about everything are extreme. Corporate America have a Merry Christmas. You may as well, you've ruined every Middle Clas Americans.............. JMJ