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
-
GM Offers Buyouts to 18,000 Salaried Workers
General Motors Co. is launching a new round of buyouts for about 18,000 of its 50,000 white-collar employees in North America.
-
Young Auto Engineers Say Their Employers Don’t Measure Up
Only one-third of U.S. automotive engineers below the age of 36 agree that their work experience matches the way their employers’ portray themselves publicly, according to new research.
-
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.