Categories: blog

Fed rate hikes killing economic growth -inflation decreasing

Annual inflation rate in the United States fell to 1.9 percent in December of 2018 from 2.2 percent in November, matching market expectations. It is the lowest inflation rate since August of 2017, mainly due to a decline in gasoline cost. On a monthly basis, consumer prices edged down 0.1 percent after a flat reading in the previous month and also in line with forecasts. It is the first monthly decrease in consumer prices in nine months, due to a 7.5 percent slump in gasoline prices. Inflation Rate in the United States averaged 3.27 percent from 1914 until 2018, reaching an all time high of 23.70 percent in June of 1920 and a record low of -15.80 percent in June of 1921.

1

CalendarGMTActualPreviousConsensusTEForecast
2018-10-1112:30 PMInflation Rate YoY2.3%2.7%2.4%2.7%
2018-11-1401:30 PMInflation Rate YoY2.5%2.3%2.5%2.4%
2018-12-1201:30 PMInflation Rate YoY2.2%2.5%2.2%2.4%
2019-01-1101:30 PMInflation Rate YoY1.9%2.2%1.9%2.2%
2019-02-1301:30 PMInflation Rate YoY1.9%1.9%
2019-03-1212:30 PMInflation Rate YoY2%
2019-04-1012:30 PMInflation Rate YoY2%

US Inflation Rate Lowest in 16 Months

Annual inflation rate in the United States fell to 1.9 percent in December of 2018 from 2.2 percent in November, matching market expectations. It is the lowest inflation rate since August of 2017, mainly due to a decline in gasoline cost. On a monthly basis, consumer prices edged down 0.1 percent after a flat reading in the previous month and also in line with forecasts. It is the first monthly decrease in consumer prices in nine months, due to a 7.5 percent slump in gasoline prices.

Year-on-year, prices fell for gasoline (-2.1 pecent compared to +5 percent in November); new vehicles (-0.3 percent compared to +0.3 percent); medical care commodities (-0.5 percent compared to +0.6 percent); and apparel (-0.1 percent compared to -0.4 percent). Also, cost slowed for fuel oil (1.9 percent compared to 16.1 percent in November); transportation services (2.8 percent compared to 3.3 percent); and used cars and trucks (1.4 percent compared to 2.3 percent). On the other hand, inflation went up for electricity (1.1 percent compared to 0.6 percent); food (1.6 percent compared to 1.4 percent); medical care services (2.6 percent compared to 2.4 percent); and used cars and trucks (1.4 percent compared to 0.4 percent) but was steady for shelter (3.2 percent). Also, cost rebounded for utility piped gas service (2.3 percent compared to -2.1 percent). 
Excluding food and energy, consumer prices increased 2.2 percent over a year earlier, the same as in November and matching forecasts.
On a monthly basis, the gasoline index fell 7.5 percent in December. This decline more than offset increases in several indexes including shelter, food, and other energy components. The energy index went down 3.5 percent, as the gasoline and fuel oil indexes decreased, but the indexes for natural gas and for electricity increased. The food index went up 0.4 percent in December.
The index for all items less food and energy increased 0.2 percent in December, the same increase as in October and November and in line with forecasts. Along with the index for shelter, the indexes for recreation, medical care, and household furnishings and operations all increased in December, while the indexes for airline fares, used cars and trucks, and motor vehicle insurance all declined. 

read more…

https://tradingeconomics.com/united-states/inflation-cpi

This post was last modified on January 12, 2019 8:03 am

Robert Paul

Robert is a realtor in Bedford NY. He has been successfully working with buyers and sellers for years. His local area of expertise includes Bedford, Pound Ridge, Armonk, Lewisboro, Chappaqua and Katonah. When you have a local real estate question please call 914-325-5758.

Recent Posts

Out of Sevice with brain injury since November.

Just back out of hospital in early March for home recovery. Therapist coming today.

1 year ago

Existing home sales down 28% | Katonah Real Estate

Sales fell 5.9% from September and 28.4% from one year ago.

1 year ago

Single-Family Housing Contraction Continues | Bedford Hills Real Estate

Housing starts decreased 4.2% to a seasonally adjusted annual rate of 1.43 million units in…

1 year ago

Closed Median Sale Price in Hudson Valley/NYC Markets Declined by 2.50% in October | Bedford Real Estate

OneKey MLS reported a regional closed median sale price of $585,000, representing a 2.50% decrease…

1 year ago

Building Materials Prices Decline for Second Consecutive Month | Pound Ridge Real Estate

The prices of building materials decreased 0.2% in October

1 year ago

Mortgage rates drop with inflation drop | Bedford Corners Real Estate

Mortgage rates went from 7.37% yesterday to 6.67% as of this writing.

1 year ago

This website uses cookies.