My Two Cents

Deflationary pressures increase

Chris Farrell Dec 12, 2008

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.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.

Latest Episodes From Our Shows

7:59 AM PDT
3:00 AM PDT
1:52 PM PDT
Sep 21, 2021
Sep 21, 2021
Sep 21, 2021
Aug 26, 2021