Deflationary pressures increase
The producer price index (PPI) for finished goods fell by 2.2% in November, according to the Labor Department. That follows the record drop of 2.8% in October. The PPI is up a mere 0.4% from a year ago. Also on the price front, the Labor Department reported yesterday a record drop in import prices for November.
Prices aren’t falling for good reasons, such as technological and organizational efficincies. No, demand is falling sharply. The recession here and abroad is getting worse, and the risk that deflationary pressures are taking root in the global economy rising.
The Fed will cut its benchmark interest rate sharply when it meets next week.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.