Inflation rate is worst in 17 years

Tumbleweed · Black Ops Joined: 02 Jul 2007 Posts: 3687 votes: 3

Energy and groceries seem to be what's behind this latest economic news. Both will hit the low income folks hard.

WASHINGTON - Higher costs for energy and food last year pushed the inflation rate up by the largest amount in 17 years, even though prices generally remained tame outside of those two areas. Meanwhile, industrial output was flat in December, more evidence of a significant slowdown in the economy.

Consumer prices rose by 4.1 percent for all of 2007, up sharply from a 2.5 percent increase in 2006, the Labor Department said Wednesday. Consumers felt the pain when they filled up their gas tanks or shopped for groceries. Prices for both energy and food shot up by the largest amount since 1990.

In a second report, the Federal Reserve said that output at the nation's factories, mines and utilities showed no growth in December, adding to a string of weak economic reports showing that the economy was slowing at the end of last year.

The unchanged output in December was the poorest showing since industrial output actually fell by 0.5 percent in October. Output had been up by 0.3 percent in November.

The December weakness reflected flat output at U.S. factories, a tiny 0.1 percent rise in the mining industry and a 0.2 percent drop at the nation's utilities.

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CHUQ · Posted: Thu Jan 17, 2008 2:43 am Post subject:

But we are told the economy is sound. Whatever that means.
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Tumbleweed · Black Ops Joined: 02 Jul 2007 Posts: 3687 votes: 3

They can say what they like. The numbers speak for itself. IMO. I think we are headed for a recession.