Inflation in the US

By: EconomyWatch   Date: 22 December 2010

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The problem of inflation in the US is an old one for the largest economy of the world but at present, it is in its worst shape. At present, the whole economy is struggling hard to get out of the grip of the present inflation.

Current US Inflation Scenario
Along with this, the reduced consumer demand and the falling reduced business of the real estate sector have been fuelling this problem from a long time. According to latest available data, inflation in the US is in a moderate state at present and it is expected that US economy will overcome this problem very soon.

US Inflation – Expert Predictions and Index Situations
Consumer Price Index has shown some positive movement and this has led economic experts to predict that US inflation may be brought under control. This index has shown a rise of 0.3% in March 08. The housing sector has also experienced some price hike due to certain reasons.

There are a number of economists who believe that US inflation situation may deteriorate further as the market trend show that consumers are paying less for dairy products, vegetables, alcoholic products and fruits. There are certain other products like automobiles, clothes and computers that have also been subjected to low prices. A positive rise of 2.4% in core prices is a sign of comfort for the US economy.

US Inflation Trends
The following table provides an indication of the inflation rates in USA in the past five years:

2004 January – 1.93%
February – 1.69%
March – 1.74%
April – 2.29%
May – 3.05%
June – 3.27%
July – 2.99%
August – 2.65%
September – 2.54%
October – 3.19%
November – 3.52%
December – 3.26%
2005 January – 2.97%
February – 3.01%
March – 3.15%
April – 3.51%
May – 2.80%
June – 2.53%
July – 3.17%
August – 3.64%
September – 4.69%
October – 4.35%
November – 3.46%
December – 3.42%
2006 January – 3.99%
February – 3.60%
March – 3.36%
April – 3.55%
May – 4.17%
June – 4.32%
July – 4.15%
August – 3.82%
September – 2.06%
October – 1.31%
November – 1.97%
December – 2.54%
2007 January – 2.08%
February – 2.42%
March – 2.78%
April – 2.57%
May – 2.69%
June – 2.69%
July – 2.36%
August – 1.97%
September – 2.76%
October – 3.54%
November – 4.31%
December – 4.08%
2008 January – 4.28%
February – 4.03%
March – 3.98%
April – 3.94%
May – 4.18%
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