Mild price rise in US painful for families
By Martin Crutsinger |
January 16, 2010, Saturday
|
Print Edition
Print Edition
ALTHOUGH consumer inflation in the United States was tame in 2009, with prices rising 2.7 percent, families still felt squeezed as their spending power sank amid falling wages, job losses and higher prices for energy, medical care and education.
A surge in energy prices last year offset the biggest drop in food costs in nearly a half century.
The US Labor Department yesterday said its Consumer Price Index rose a mild 0.1 percent in December. Excluding food and energy, prices edged up just 0.1 percent last month.
A separate department report showed inflation-adjusted weekly wages for the 12 months ending in December fell 1.6 percent -- the sharpest decline since 1990. Slack wages and scarce job creation have slowed consumer spending, hindering the economy's ability to mount a strong recovery.
The 2.7 percent rise in overall consumer prices for 2009 followed a 0.1 percent increase in 2008, which had been the smallest gain in more than a half century.
Energy costs for the 12 months ended in December jumped 18.2 percent. That was the biggest jump since 1979, after they had dropped 21.3 percent in 2008. The energy surge was led by higher gasoline costs, which rose 53.5 percent after falling 43.1 percent in 2008.
Food prices swung in the opposite direction. After rising 5.9 percent in 2008, they fell 0.5 percent for the 12 months ended in December, the biggest drop since 1961.
Core inflation, which excludes the volatile food and energy categories, rose 1.8 percent for the 12 months through December. It matched the 1.8 percent rise in core inflation in 2008. Both gains were the smallest since a 1.1 percent rise in 2003.
Core inflation is expected to remain low in 2010 as the country struggles to emerge from the deepest recession since the 1930s. Yet moderate price increases are small comfort for workers whose wages have lagged behind even slight inflation.
The 1.6 percent drop in average weekly earnings for non-supervisory workers was the worst annual showing since a 2.5 percent decrease in 1990.
A surge in energy prices last year offset the biggest drop in food costs in nearly a half century.
The US Labor Department yesterday said its Consumer Price Index rose a mild 0.1 percent in December. Excluding food and energy, prices edged up just 0.1 percent last month.
A separate department report showed inflation-adjusted weekly wages for the 12 months ending in December fell 1.6 percent -- the sharpest decline since 1990. Slack wages and scarce job creation have slowed consumer spending, hindering the economy's ability to mount a strong recovery.
The 2.7 percent rise in overall consumer prices for 2009 followed a 0.1 percent increase in 2008, which had been the smallest gain in more than a half century.
Energy costs for the 12 months ended in December jumped 18.2 percent. That was the biggest jump since 1979, after they had dropped 21.3 percent in 2008. The energy surge was led by higher gasoline costs, which rose 53.5 percent after falling 43.1 percent in 2008.
Food prices swung in the opposite direction. After rising 5.9 percent in 2008, they fell 0.5 percent for the 12 months ended in December, the biggest drop since 1961.
Core inflation, which excludes the volatile food and energy categories, rose 1.8 percent for the 12 months through December. It matched the 1.8 percent rise in core inflation in 2008. Both gains were the smallest since a 1.1 percent rise in 2003.
Core inflation is expected to remain low in 2010 as the country struggles to emerge from the deepest recession since the 1930s. Yet moderate price increases are small comfort for workers whose wages have lagged behind even slight inflation.
The 1.6 percent drop in average weekly earnings for non-supervisory workers was the worst annual showing since a 2.5 percent decrease in 1990.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
