Inflation Lowest Ever Recorded

By on November 18, 2010

The Wall Street Journal’s Connor Dougherty reports there is virtually no inflation in the U. S.:

A key gauge of U.S. inflation has fallen to its lowest level since record-keeping began in 1957, underscoring the continued weakness in the economy.

Consumer prices rose 0.2% in October compared with September, almost entirely because of higher energy costs, the Labor Department said Wednesday.

When volatile food and energy are subtracted, prices were unchanged last month—the third straight month in which this so-called core measure of inflation was flat. Compared with a year ago, consumer prices other than food and energy have risen 0.6%.

The article underscores the reasoning behind the Fed’s QE2 program, in which Ben Bernanke is attempting to fight off deflation.

Source: The Wall Street Journal

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