By Jim Cline
The Bureau of Labor Statistic’s release of national inflation numbers for July shows that national inflation was level for the month. On a 12 month basis, the All Cities CPI-U declined from 1.7%to 1.4 % and the All Cities CPI-W moved from 1.6% to 1.3%. The Seattle inflation numbers are reported bimonthly, with the bimonthly August numbers due out in mid-September. Economist took the report as an indication that the soft economy was keeping inflation in check. Economist James Marple explained: Inflation is on a clear downward trajectory. With an unemployment rate at 8.3 percent, weak economic growth, both domestically and globally, and a rising U.S. dollar, inflation is likely to drift lower over the coming months. However, most economists are also predicting that the current lull in inflation will not continue long. The current summer drought is expected to create a jump in food prices later this fall, pushing inflation higher.
As we have discussed previously, the stronger Seattle economy and the recent rebound in the housing market should keep the Seattle CPI running ahead of the national inflation rate in the near future. For more detailed information and data on CPI, visit our Premium Website.
