Wednesday, April 16, 2008

CPI for March increased moderately

The Consumer Price Index for All Urban Consumers (CPI-U), not seasonally adjusted, increased 0.87% in March compared to February the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The March level of 213.528 was 3.98% higher than in March 2007.

Inflation typically goes down during recessions as the slowdown in the economy affects demand. However, the price of oil and the inflationary pressures China is applying is counterbalancing this tendency. The weakening dollar is also making imports more expensive and is causing prices to rise. It remains to see how this tug-of-war will play out.

Digg my article

Sphere: Related Content

No comments: