Consumer Prices Drop 0.2% in August
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iStock/Thinkstock(WASHINGTON) — Consumer prices dipped 0.2 percent last month, the U.S. Bureau of Labor Statistics reported Wednesday, marking the first drop since April 2013.
Gas, airline tickets and clothing were cheaper in August, and most other core prices remained unchanged. But the same can’t be said for some foods.
“We saw more than a 4 percent drop during the month of August in the prices at the pump. We needed those declines, because we did have increases at the grocery store,” Mesirow Financial chief economist Diane Swonk said.
Prices for meat, poultry, fish and eggs were up, she said, but “if you are a vegan you did ok, because fruit prices and non-alcoholic beverages fell.”
Over the last 12 months, the government says consumer prices have increased 1.7 percent. That inflation rate is slightly lower than what the Federal Reserve would like to see for a healthy economy.
“This is something that is more disturbing to the Fed. The Federal Reserve would like to see a little hotter economy with more job gains rather than an economy that’s cool to the touch,” Swonk said.
Fed Chair Janet Yellen is scheduled to speak later Wednesday as the Federal Reserve wraps up a two-day meeting.
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