It is doubtful that the Federal
Reserve will raise interests rate in March as the price of food and energy
goods dipped in December. In addition, housing starts and new building permits
declined in December. The Labor Department confirmed that the CPI dropped to
0.1 percent from November. This drop can be attributed to increased housing and
healthcare costs. Consumer prices increased by a mere 0.7% in 2015, the
smallest annual increase in the last 50 years. Gas prices also fell by 3.9% in
December. Inventories increased in December as well helped to decrease prices
of core goods.
"Faltering rent inflation ... signals the loss of economic
momentum. That momentum moved millennials off of their parents' couch and onto
their own, but momentum may no longer be strong enough to put the same upward
pressure on rents," said Steve Blitz, chief economist at ITG Investment
Research in New York.
http://in.reuters.com/article/us-usa-economy-inflation-idINKCN0UY1LH
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