Consumer Prices Rise Amid Recession
With the continuous increase of oil value, consumer prices also rose amidst the ongoing global recession, which usually happens when the price of goods remained unchanged for three straight months.
On the other hand, analysts provided assurance that Americans will not face dramatic price inflation this year.
The consumer prices surged last month following the increase of oil’s value in the world market, according to US analysts.
Experts said that the consumer prices increased by 0.3 percent last January compared to the last quarter of 2008, adding that all the products value except from energy and food rose by 0.1 percent. Compared to the same period of last year, the price increased by 1.5 percent, the economists added.
To allay some concerns, economists said that US will not face debilitating inflation rate in the year 2009, saying that surge of consumer price by 0.8 percent is just a result of increasing oil prices
The experts also explained that low consumer prices during the fourth-quarter of last year resulted to an exaggerated trend, adding that for the past three months, inflation seemed to be halted due to economic downturn.
As the world is facing higher oil prices just after it plummeted to its lowest price for many decades, experts said that this will not cause inflation, but rather deflation or the lowering of the product’s value.
Meanwhile, analysts said that global consumers should expect that the price of oil will bounce back following the growing demand for energy especially by the Americans.
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