To: Crimson Ghost who wrote (49333 ) 2/19/2000 9:30:00 AM From: long-gone Respond to of 116861
If this trend continues will we be driving our naked bodies to the poor house?:[ :) ] Consumer Prices Rise Modestly E-Mail This Article Printer-Friendly Version By Jeannine Aversa Associated Press Writer Friday, February 18, 2000; 1:49 PM Consumer prices edged up 0.2 percent in January as the biggest drop in clothing prices in nearly 11 years helped offset rising costs for fuel oil, gasoline and other energy products, the government said today. The modest advance in the Labor Department's Consumer Price Index, the most closely watched inflation gauge, was slightly less than the 0.3 percent increase many analysts were expecting and marked four months in a row in which inflation stood at 0.2 percent. A 1.1 percent decline in clothing prices ? the largest drop since February 1989, reflecting post-holiday discounting by retailers to make room for new merchandise ? helped offset a big 1 percent jump in energy prices and rising costs for other products. Outside the volatile energy and food categories, the "core" rate of inflation rose 0.2 percent last month, matching many analysts' predictions. That followed a slim 0.1 percent rise in the core in December. The report comes one day after the government said inflation at the wholesale level was unchanged in January and that core wholesales prices, excluding energy and food, actually fell 0.2 percent. Both inflation reports suggest that outside the burst in energy costs, most other prices remain in check. But some economists said the CPI report could set the stage for bigger price increases in the future. Among other things, they are worried that rising energy costs will push up other prices. "The tame headline number hides some real pressures on consumer prices," said economist Joel Naroff of Naroff Economic Advisors.(cont)washingtonpost.com