Featured Stories World News Commentary Money Watch Multimedia Prison Planet U.S. News Science And Technology

October consumer prices and home starts plummet

  • Print The Alex Jones Channel Alex Jones Show podcast Prison Planet TV Infowars.com Twitter Alex Jones' Facebook Infowars store

Glenn Somerville
Wednesday, November 19, 2008

WASHINGTON (Reuters) – Consumer prices dropped at the fastest rate on record in October and new home construction was at a record low, according to government reports on Wednesday that underlined how rapidly the economy was weakening.

The Labor Department said its widely watched Consumer Price Index plummeted 1 percent, exceeding forecasts by Wall Street analysts for a 0.8 percent decline and the biggest drop since the department began monthly data in 1947. Core prices, which exclude food and energy items, declined 0.1 percent in contrast to the 0.1 percent advance that had been forecast.

Analysts said earlier concern about inflation risks may soon be replaced by worry about deflation, which also has a corrosive effect on the economy’s performance.

Separately, the Commerce Department said new-home starts fell 4.5 percent last month to a seasonally adjusted annual rate of 791,000 units and building permits — which signal future building intentions — dropped 12 percent to 708,000.


Many economists think the U.S. economy already is in recession even though one has not yet been formally declared. A severe global credit crunch that has sapped demand for commodities and hurt consumers has already driven parts of Europe and Japan into recession.

  • A d v e r t i s e m e n t

“It appears we are in a period of disinflation right now, where the actual level of inflation is trending lower,” said Michael Sheldon, chief market strategist for RDM Financial, Westport, Connecticut. “The question is will the economy rebound enough with the benefit of a big stimulus plan in 2009 to prevent deflation and get consumers spending again.”


This article was posted: Wednesday, November 19, 2008 at 10:36 am

Infowars.com Videos:

Comment on this article

Comments are closed.

Watch the News

The War on Men See the rest on the Alex Jones YouTube channel.

Raheem Kassam: Sh*thole London See the rest on the Alex Jones YouTube channel.

https://www.youtube.com/embed/n2bCgunLEB4 https://www.youtube.com/embed/bcPVfa76Qig

© 2018 PrisonPlanet.com is a Free Speech Systems, LLC company. All rights reserved. Digital Millennium Copyright Act Notice.