- As less consumers are paying for producst. Many economists are worrying about deflation as current trends continues, which the core rate might drop below the Federal Reserve's target.
Thursday, March 18, 2010
Consumer prices flat in February
U.S. consumer prices were unchanged on a seasonally adjusted basis in February, as falling energy prices offset increases in prices of cars, medical care and food. In the past year, the CPI has risen 2.1%. The core rate is up 1.3% in the past year, the smallest year-over-year increase in six years. If current trends continue, the core rate could drop below the Federal Reserve's target of 1% to 2% for the first time since 1963, economists said, fueling some worries about deflation.
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