The April Consumer Price Index, which measures inflation, had no increase or decrease from March. The reason was gasoline prices, which declined -2.6% from last month Below is the graph for CPI's monthly percentage change.
The February Consumer Price Index, which measures inflation, increased 0.4%. Gas prices are responsible for 80% of the monthly CPI increase. From a year ago, CPI has risen 2.9%. Below is the graph for CPI's monthly percentage change.
The November Consumer Price Index, which measures inflation, had no change, or zero from last month. The flat line was caused by a -1.6% energy decrease for the month. Food increased 0.1%. Gas alone decreased -2.4% in a month and food at home, or groceries, decreased -0.1%. Eating out increased 0.3%. Core CPI, or price increases minus food and energy costs, rose 0.2%.
The October Consumer Price Index, which measures inflation, decreased -0.1% from last month. The overall decline was caused by a -2.0% energy decrease for the month. Food increased 0.1%. Gas alone decreased -3.1% in a month and food at home, or groceries, increased 0.1%. Core CPI, or price increases minus food and energy costs, rose 0.1%. Core CPI is a Federal Reserve inflation watch number.
The September Consumer Price Index, which measures inflation, increased 0.3% from last month. Food increased 0.4% and energy 2.0%. Gas alone increased 2.9% in a month and food at home, or groceries, increased 0.6%. Core CPI, or price increases minus food and energy costs, rose 0.1%. Core CPI is a Federal Reserve inflation watch number.
The Producer Price Index, or wholesale inflation, did not change, or zero for August 2011 finished goods. Food trumped gas as foods increased 1.1% while gas dropped -1.0%. Core PPI, which is finished goods minus food and energy, increased 0.1% and is the 9th month in a row for an increase. While this is wholesale, tire shoppers beware, 20% of core's increase was tires, up 1.4% from July.
the Commerce Department reported Wednesday that sales of new homes fell an estimated 5.3% in October to a seasonally adjusted annual rate of 433,000, the lowest level since 1991.
The real news on these economic indicators is that economists seemingly consistently under estimated the declines.
Now to the meat of these indicators: the price of homes. Prices have declined 7% from one year ago, to a median price of $218,000.
Let's see, the mortgage calculator would give a rough monthly payment of $1500 dollars.
What kind of salary does one need to afford a $1500 dollar house payment?
The relentless slide in home prices has left nearly one in six U.S. homeowners owing more on a mortgage than the home is worth, raising the possibility of a rise in defaults -- the very misfortune that touched off the credit crisis last year.
The result of homeowners being "under water" is more pressure on an economy that is already in a downturn. No longer having equity in their homes makes people feel less rich and thus less inclined to shop at the mall.
And having more homeowners under water is likely to mean more eventual foreclosures, because it is hard for borrowers in financial trouble to refinance or sell their homes and pay off their mortgage if their debt exceeds the home's value. A foreclosed home, in turn, tends to lower the value of other homes in its neighborhood
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