Lower gasoline prices restrain U.S. consumer inflation

[CountAllVotes]

Source: Reuters

WASHINGTON (Reuters) - U.S. consumer prices were unchanged for a third straight month in January, leading to the smallest annual increase in inflation in more than 1-1/2 years, which could allow the Federal Reserve to hold interest rates steady for a while.

The Labor Department's report on Wednesday supported the Fed's recent description of price pressures being "muted." In a policy statement last month, the U.S. central bank kept rates unchanged, pledged to be "patient" before tightening monetary policy further and discarded promises of "further gradual increases" in borrowing costs.

"Inflation still appears to be well in check," said Jim Baird, chief investment officer at Plante Moran Financial Advisors in Kalamazoo, Michigan. "That should be enough for the Fed to take time to evaluate the gradual effects of its prior rate hikes and move more slowly and thoughtfully in administering rate policy in the months ahead."

The Consumer Price Index last month was held down by cheaper gasoline, which offset increases in the cost of food, rent, healthcare, recreation, apparel, motor vehicles and household furnishings. In the 12 months through January, the CPI rose 1.6 percent, the smallest gain since June 2017. The CPI increased 1.9 percent on a year-on-year basis in December.

Read more: https://news.yahoo.com/u-consumer-prices-unchanged-january-133906374--finance.html

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No inflation for three months.

Who believes this?

[watoos]

1. I don't believe it.

I'm retired and rarely get a cost of living raise for SS. This year we are getting a 3.8% raise.

Putin and MBS aren't going to put up with low oil prices for much longer. It looks to me like oil is starting to go up.

[CountAllVotes]

2. It has not gone down much where I am

It is still over to $3.50/gallon.

Sounds like more lies IMO.

[onenote]

16. Sounds like you expect your experience to define everyone's.

California has higher gas prices than the rest of the country. That sucks, big time. But it doesn't make the reports of much lower prices in most of the country "lies".

[KPN]

3. We gotta tackle the deficit somehow. Why not just undermine COLAs? Great idea! That'll work!

[CountAllVotes]

4. No COLA in the future the way this is going

Anyone on a fixed income or on SSA, etc. will likely not receive a COLA next year the way this is shaping up.

Got to pay that debt created by the tax scam!

[KPN]

6. Yup!

[ansible]

5. Still over $3 a gallon here in California

[CountAllVotes]

9. Same here

The last time I saw it below $3.00/gallon was years and years ago.

We pay here in Calif. Oh yes we do!

[Igel]

11. The stations on the way/from work

have it from 1.869 to 1.839/gal for unleaded regular.

It's down a couple of cents per gallon here in the last couple of weeks, but not by much.

North of Houston.

[turbinetree]

7. My Hazard Insurance went up on my home.......................I called and asked why

...........................they surmised that it should be more, and I looked at my home insurance coverage for the structure from last year and in my escrow for this year and it went up or was going to go up almost $330.00 dollars, for the same amount of coverage .....................I surmised it's because of the climate change debacle that is happening and all of the associated costs around the country .....................I called and said that I wanted it lowered, knowing that it would not cost $100.000 more than the last appraisal to rebuild this home.........................I can't wait to see what happened with all of the snow melt that will happen along the Mississippi and Ohio this coming spring............................

[CountAllVotes]

8. Suspect living in an area where there are fires would have a huge impact

I know someone that bought close to one hundred acres of land not far from where the fire in Paradise, Calif. is located.

Seems the insurance has gone way up and the value of the property has dropped close to 20%.

What a mess.

Thanks for nothing dump.

[turbinetree]

10. Yepper, spot on.................

Thanks for nothing.........................thanks for nothing................

[Sherman A1]

12. It went up here last week

And is coming down a penny or two, but we also suffer from market manipulation by the dominant convenience store chain.

[allgood33]

13. Restrain??? But do not stop. Obviously these people do not shop for food or household goods.

I simply do not believe. All the houshold food staples are obscene now. The prices may be the same for items but the contents of all the itmes have been cut from 25 to 40%. Check oout your favorite orange juice, can goods, packaged good. The containers look the same but the contents are drastically reduced.

Find a true gallon, quart, 1/2 gallon, 1 Lb, or 16 oz can of anything. Post it here if you do. And tell us where we can find it.

[CountAllVotes]

14. Orange juice etc.

I noticed that too. The 1/2 gallon of OJ is now short 1/2 of a quart. They are on *sale* for $3.99. Some sale not! Rip-off is what it is.

I have been charging my groceries for the past month because Discover Card is giving 5% off on groceries until the end of March.

For ONE month it was close to $600 for two persons! Never had a grocery bill this huge before.

I cannot afford it!

These liars do not live in the real world!!

[onenote]

15. Just because gas in your neck of the woods is over $3.00 doesn't mean reports of lower prices are

"lies."

Regular gas in my northern Virginia neighborhood can be purchased for $2.059. Does that make those claiming that they're facing prices over $3 liars? Of course not.

The price of gas varies widely. AAA, which updates average gas prices in each state on a daily basis, currently reports that the nationwide average is $2.28. The low is $1.979 (Arkansas), the high is $3.267 (California). Over 30 states have average regular gas prices below $2.28.

https://www.democraticunderground.com/?com=post&forum=1014&pid=2265344

California's gas prices have been higher than those in the rest of the country for some time. There are several reasons for this, some having to do with environmental laws that are unique to California. It would be great if those same laws applied everywhere, but until that day comes, they will contribute to Californians paying more for gas than the rest of the country.

[Cold War Spook]

17. Sam's Club Jacksonville NC

$169.9 must be down about 50 cents in last 3-4 months. I only use about 200 gallons a year, but that is still a $100 savings if it stays low.