Mexican Media Brands
U.S. Inflation Drops as Fuel Costs Plunge
The prices Americans pay for goods and services fell 0.3% from April to May, the biggest decline in more than three years, as gasoline prices plummeted 6.8%, the Dept. of Labor says.
#labor #economics
Share
The prices Americans pay for goods and services fell 0.3% from April to May, the biggest decline in more than three years, as gasoline prices plummeted 6.8%, the Dept. of Labor says. Overall energy costs slid 4.3%, the steepest drop since December 2008.
The consumer price index posted a 1.7% gain last month compared to May 2011, the smallest year-over-year increase in 16 months.
The core price index, which excludes food and energy costs, rose 0.2% from April to May, matching its month-over-month advances in March and April. The core index climbed 2.3% from May 2011.
The report confirms the Federal Reserve's prediction that the high oil prices that boosted inflation earlier this year would soon subside. Economists say cheaper gasoline could enable Americans to spend their money on other goods and services. Lower inflation also gives the Fed leeway to take further steps to strengthen the economy.
RELATED CONTENT
-
VW Workers Again Reject UAW at Tennessee Plant
Hourly workers at Volkswagen AG’s assembly plant in Chattanooga, Tenn., have again voted against having the United Auto Workers union represent them.
-
GM, PSA Execs Rush to Build Support for Opel Sale
Top executives from General Motors Co. and PSA Group are scrambling to build support among alarmed European government and labor leaders for a plan to integrate GM’s Opel unit with PSA.
-
GM Unit Stresses Driver Training in Autonomous Cars
General Motors Co.’s Cruise Automation unit says it puts backup drivers and auditors through extensive training before allowing them to participate in real-world autonomous vehicle tests.