Tamed energy prices prompt 1% CPI drop

The consumer price index, a key indicator of inflation, fell 1%, marking the largest monthly decline since the index was first computed in 1947, according to the Department of Labor.
NOV 19, 2008
The consumer price index, a key indicator of inflation, fell 1%, marking the largest monthly decline since the index was first computed in 1947, according to the Department of Labor. The record drop was triggered by an 8.6% drop in energy prices in October, marking the largest decrease for energy since records were first kept in 1957. The index has risen 3.7% since October 2007, mostly due to record energy prices in the spring and summer months. Economists surveyed by briefing.com had estimated that the index would fall 0.7%. Energy prices had fallen 1.9% in September and 3.1% in August. Gasoline prices fell by a record 14.2% last month, which was the largest decline since gasoline prices were first tabulated in 1967. Food prices rose 0.3% in October, marking the smallest increase since May. The core consumer price index, which doesn't include food and energy prices, fell 0.1%, marking the first decline since 1982. Economists surveyed by briefing.com expected the index to increase 0.1%. "I don't think it is that surprising given the huge declines in commodity prices in the last month and the continuing weakening of the economy," said Ryan Jacob, chairman and chief executive of Jacob Asset Management in Redondo Beach, Calif. with assets under management of $300 million. "We are likely entering a deflationary environment and the data also underscores the need for the government to be active in providing stimulus."

Latest News

Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans
Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans

Wells Fargo adds two bank-channel recruits, UBS lands a JPMorgan Chase veteran, and a multi-family office lifts Atlas past $1B

Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state
Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state

“The state comes down on you in years when you make 40% returns for clients,” said Bill Swayne, the advisor and son of Candace Swayne.

Osaic in talks with Anthropic as AI reshapes advisor workforce
Osaic in talks with Anthropic as AI reshapes advisor workforce

The Independent broker-dealer giant has had “active conversations” with the Claude maker, which is days away from its expected IPO

The retirement milestone advisors aren't tracking
The retirement milestone advisors aren't tracking

For Gen X clients entering life after work, answering the financial question isn't enough to solve the entire retirement equation.

Wealthtech firms target stock pay, pensions and heirs for advisors
Wealthtech firms target stock pay, pensions and heirs for advisors

Tools from Grantd, Income Lab and Healthspan Wealth aim to keep RIAs involved in clients’ biggest money decisions

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.