Consumer prices plunge 0.6% in Nov.

[swag]

http://www.marketwatch.com/news/story.asp?siteid=mktw&guid={A09A8888-E772-4993-AF64-458AC5DD3C10}&dist=bnb

Consumer prices plunge 0.6% in Nov.
Core rate up 0.2% on shelter, medical, food

By Rex Nutting, MarketWatch
Last Update: 8:30 AM ET Dec. 15, 2005

WASHINGTON (MarketWatch) - U.S. consumer prices fell at the fastest rate since 1949 in November, plunging 0.6% as energy prices retreated, the Labor Department said Thursday.

Energy prices fell a record 8% in November, reversing a spectacular 12% gain in September. Still, energy prices are up 18.3% in the past 12 months.

Excluding volatile food and energy prices, the core consumer price index rose 0.2% in November.

The 0.6% drop in the CPI was larger than the 0.4% expected by economists surveyed by MarketWatch. The 0.2% rise in the core rate was as expected.

The CPI has risen 3.5% in the past year, down from 4.3% in October. Core inflation is up 2.1% in the past year, the same as in October.

. . . more

[Media_Lies_Daily]

1. Consumer prices are down because the retail chains are....

...having huge sales to attempt to pick up their numbers.

People are looking for bargains this year, and they're not taking items they feel are priced too high and/or basically unaffordable. People are also being faced with higher costs for utilities, food, gas, heating oil, etc., and that doesn't leave much money for anything else.

[swag]

2. An inevitable blip, and probably the last month/month decline for a while

Almost solely on energy prices bouncing back down to still high prices.

The rest of the article details the continued pick-up in other prices.

[BOSSHOG]

3. In three months

oil prices fell 20%, while still maintaining a 18.3% rise in the past 12 months. No doubt some right wing yahoo with access to a microphone will tout the .6% figure as great news all the while blathering on about how republicans don't watch polls or relative statistics.

[swag]

4. Right wing yahoo with access to a microphone?

You mean like the yellers on CNBC?

[BOSSHOG]

5. Or limbaugh or hannity or bush or frist or hastert

[ypsiguy]

6. Economic news

Why is it when fuel prices go up, RISING fuel prices are EXCLUDED, and the numbers are reported as a "slight increase". But this time, fuel prices fall,and they are suddenly relevant, and then the news is the "BIGGEST DECLINE SINCE 1949!!!" ?

[booksenkatz]

14. Hear, hear!

I don't care about sales prices on frou-frou gifty-gifts and crap nobody needs; my grocery bill is still the highest it's ever been, no matter how cheaply I try to make the meals, no matter how many store brands I choose over the name brands. I cannot win at the grocery store, I cannot.

Welcome to DU, ypsiguy, make yourself at home!

Are we getting our butts snowed on today, or what?
/Cantongal

[ypsiguy]

19. thanks

for the welcome... the snow's not too bad here today-- yet. It's not as horrible as they were warning us about all yesterday. Let's hope it stays away.

[eyeontheprize]

7. The exclusion of the volatiles makes these numbers meaningless

Food and energy are so high that no one has any money left for other commodities, so the price for those goes down.

[natrat]

17. no ,,,high end retailers doing well--wealth redistribution on schedule nt

[plasticsundance]

8. This is not good news.

It means businesses, such as retailers, cannot pass on costs to the customers. It will mean more businesses not able to compete in the global markets. Look at all the incentives Ford and GM offered in the past, and how has it helped them? Unfortunately, it will be the employees that suffer.

[kcwayne]

9. The real number: consumer price index rose 0.2% in November

Excluding volatile food and energy prices, the core consumer price index rose 0.2% in November.<\i>

Pay attention folks.

[Onlooker]

10. The economy is doing really well

We shouldn't kid ourselves and pretend otherwise. The economy is doing really well, and the big issue is whether the policies will eventually backfire (a debate that really belongs among economists) and whether the policies are otherwise good for the nation. I think most of us agree the policies are bad for the nation, because the things that fuel the economy also seem to be fueling lower wages, unemployment, war, prejudice, greed, worse working conditions, and so on. In other words, we are fueling our economic engine with death and abuse of various kinds.

[TheWatcher]

20. The Economy is NOT doing very well and you need to stop deluding yourself

In detail, I would gladly urge to to Post all of your reasons the economy is doing well for any other group than Wall Street, The Investor Class, The Top 5%, High End Retailers, and basically those who aren't 95% of the rest of us.

I suppose since the economy is roaring in your world, the following things do not matter:

A record trade deficit,
A record current account deficit,
A near-record budget deficit,
Record personal bankruptcies,
Record underfunding of pensions,
Record budget shortfalls for state and local governments,
Record debtloads,
A record housing price bubble,
A pathetically small manufacturing sector,
A dead airline sector,
A near-dead auto sector,
A soon-to-be-dead homebuilders sector,
The costly Iraq quagmire,
The grim underfunding of Social Security, Medicare,
The astounding lack of corporate governance,
The mind-boggling complacency of investors,
The negative savings rate of U.S. consumers,
The mortgage debt doubling in five years to $11 trillion,
The ridiculously high valuations of stocks, particularly kinky techs,
and the list goes on and on......

[stickdog]

23. How in the FUCK is the economy doing well? The stock market

is getting propped up -- I'll grant you that.

What the fuck is the other supposed good news that we're supposed to be lauding?

[sendero]

11. I'm so sick of the spin...

... on every aspect of the news.

When the numbers are higher, they exclude the "volatile food and energy sectors". In the rare instance when those are down, they trumpet that as the meaningful number.

Guess what? Food and energy may be volatile but they are among the most important, especially energy which ripples throughout the economy.

We have inflation, and lots of it - and the government and the media do their best to act like we don't. Confronting reality is generally a better plan than denial.

[durablend]

21. Nobody needs food or energy

Stop deluding yourself!

:sarcasm:

[hatrack]

12. A blip masquerading as news

Just wait until the natural gas bills arrive.

[Changenow]

18. Bingo.

It broke $15.00 yesterday, it was back down this am.

Electrical bills are also twice last year where the power is generated by natural gas.

[Javaman]

13. Just the calm before the storm...

Wait until the holiday fuzzy's wear off. Mark my words...

[Roland99]

15. Don't forget to remove gas/food from the price drop...*they* do it when

the price increase is dramatic as a way to beat down the true cost of inflation.

[mntleo2]

16. Plunge? What Plunge?

I am sorry but I do not buy it (pun intended). As a matter of fact, I can barely afford toilet paper. Gas is up, rent is up, heating and electricity are up, water bill is skyrocketing, milk and all my groceries have gone up.

Where the hell are things "plunging"??????

Come on, do they think we are idiots?

Cat In Seattle <---who is trying to figure out how to flush catalogue paper without plugging up the plumbing, lol

[stickdog]

22. I guess Bush's buddies had to rein in their profit taking slightly.

His approval "bump" is due to one thing: gas prices retreating from the stratosphere.