Economic Article

EconomicArticle

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EconomicArticle

Anarticle in Los Angeles Times on 6 January 2014 focusing on UnitedStates inflation reported that annual inflation rate stays low asConsumer prices rise on the costs of gas. Moreover, the articleportrayed that Los Higher gas expenses helped push consumer prices upin the previous month by the biggest edge in six months, however theyearly inflation rate remained low, and this was according tostatistics given by the Labor Department.

Accordingto Jim Puzzanghera (2014), the author of the article, the ConsumerPrice Index expanded 0.3% in December, contrasted with the earliermonth (Puzzanghera, 2014). The list, a key measure of inflation, hadbeen flat in November. The last time the index climbed more was inJune, when it bounced 0.5%. The article further reported that theprevious month`s increment was in accordance with projections byeconomists, who anticipated that costs would climb as the economyreinforced at year`s end.

Additionally,the article showed that the increase of gas prices in December helpedin pushing up the inflation rate over the past 12 months to 1.5%. Therate was 1.2% by November. The article did an in-depth analysis ofthe situation and concurred that in despite the ascent, inflationstays below the annual target of 2% of the Federal Reserve(Puzzanghera, 2014).

Accordingto the article, higher gas costs were a central point in December`sinflation. The Labor Department`s gas file rose 3.1% last month inthe wake of dropping the two earlier months. The ascent was thebiggest since June, when the file was up 6.3%. Other vitalityrecords, especially for fuel oil, likewise were up in December(Puzzanghera, 2014).

Inconclusion, the article demonstrated that stripping out frequentlyunstable energy and food costs, consumer prices were up only 0.1% inDecember contrasted with the earlier month. That is down from a 0.2%rise in November. The yearly inflation rate barring food and gas was1.7% in December, the same as the past three months. This article istruly a good piece to refer about the US inflation.

References

Puzzanghera,J. (January 16, 2014). LosAngeles Times:Consumerprices rise on gas costs annual inflation rate remains low.