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MONDAY, NOVEMBER 23, 2009
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Consumer Prices Take Biggest Dip in 59 Years

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(Newser) – Consumer prices have fallen 2.1% over the past year, the biggest year-over-year decline in 59 years, the Labor Department announced today. Though the Consumer Price Index was unchanged from June to July, it was drastically lower than in July 2008, when oil peaked at $147 a barrel and gas cost $4.11 per gallon, the Washington Post reports. Economists fear dropping prices are a sign of deflation.

Deflation can be even more dangerous than inflation, because falling prices often bring wages down with them, creating a vicious downward spiral. The slackening of the domestic economy reflects a worldwide slowdown, the New York Times reports. "The inflation story was nonsense in an environment where you have such wild excess capacity globally," says an economist. "I think inflation is below 2% for the next 2 years."

Chart shows the percentage change in the Consumer Price Index from the prior month, seasonally adjusted, from July 2008 to July 2009.
Chart shows the percentage change in the Consumer Price Index from the prior month, seasonally adjusted, from July 2008 to July 2009.
Sale signs adorn the door of an Urban Outfitters retailer on the Third Street Promenade in Santa Monica, Calif., Thursday, Aug. 13, 2009.
Sale signs adorn the door of an Urban Outfitters retailer on the Third Street Promenade in Santa Monica, Calif., Thursday, Aug. 13, 2009.   (AP Photo/Reed Saxon)
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10 comments
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Jayster999
Aug 14, 09 1:12 PM CDT
Kind of sad to see things go to hell in a hand basket. America had better learn to pray again. Reply
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-8
IN RESPONSE:
rajanKazhmin
Aug 14, 09 1:24 PM CDT
Oh yeah, because if there's one thing that really works when you have a problem, it's prayer. Give me a break. God ain't there, kid.
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+8
IN RESPONSE:
Jayster999
Aug 14, 09 1:28 PM CDT
He's there for me.
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-6
IN RESPONSE:
Doctor_Zaius
Aug 14, 09 1:28 PM CDT
Yes, pray that people stop listening to people like you.
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+3
IN RESPONSE:
UrUndertaker
Aug 14, 09 1:28 PM CDT
What is really sad to see is it took the Republicans so long to see where their Leader had driven the country with his trillion dollar war and rape of the economy to the point in which the entire thing crashed. Many are still praying each night that they actually learn the next lesson which is to take responsibility for the problems caused and actually begin to work to help repair the issues which still face the nation instead of being the clowns who are screaming at public meetings, spreading lies to help cover their hatred for all things not white such as the Birther garbage. We pray daily that they start acting as Americans and not spoiled children who would rather break that repair and maintain but then again we are not holding our breath based on the constant actions of the few we have to judge from here on this board.
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+11

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