I have been in the stores. It's an eirie feeling when there is not much new on the shelves. Even the dollar junk stores were out of alot of Christmas notions. The stores are not stocking up this year folks. I hope everyone has a Merry Christmas anyway. It's not always about what you can buy.

Not for anything but I have been saying that we need a year of jubilee. If the big guys won't do it, it looks like they will be forced to.

I have to say tho, this season makes me want to just be out there with other people even more. In a different way than the usual that is.


Consumer prices drop record 1 percent in October

Consumer prices drop by largest amount in past 61 years as energy prices see record plunge
Martin Crutsinger, AP Economics Writer
Wednesday November 19, 2008, 9:24 am EST
Yahoo! Buzz Print WASHINGTON (AP) -- Consumer prices plunged by the largest amount in the past 61 years in October as gasoline pump prices dropped by a record amount.


In this Oct. 27, 2008 file photo, a customer pumps gas for $1.99 a gallon at the Dixie Deli gas station in Fairfield, Ohio. Consumer prices plunged by the largest amount in the past 61 years in October as gasoline pump prices dropped by a record amount. (AP Photo/Al Behrman, File)
The Labor Department said Wednesday that consumer prices fell by 1 percent last month, the biggest one-month decline on records that go back to February 1947. The drop was twice as large as the 0.5 percent decline analysts expected.

In other economic news, the Commerce Department reported that construction of new homes and apartments fell by 4.5 percent in October to an annual rate of 791,000 units. That was the slowest construction pace on records going back to 1959 and underscored that housing remains caught in a severe slump.

The big drop in inflation reflected not only a huge fall in gasoline and other energy costs, but widespread declines in other areas. Core consumer prices, which exclude food and energy, fell by 0.1 percent last month, the first drop in core prices in more than a quarter-century.

There were price declines for clothing, new and used cars, and airline fares. Analysts predicted further declines in the months ahead as retailers struggle to attract consumers who are being battered by rising unemployment and the weak economy.

"This report clearly reflects the crunch in discretionary consumers' spending which is likely to persist for the foreseeable future," said Ian Shepherdson, chief U.S. economist at High Frequency Economics.

The big retreat in consumer prices represented a remarkable turnaround from just a few months ago when a relentless surge in energy prices raised concerns that inflation could get out of control.

Since that time, the economy has been jolted by the most serious financial crisis in seven decades with all the turbulence expected to push the country into a severe and prolonged recession.

The U.S. troubles have quickly spread overseas, depressing growth around the world and cutting into demand for oil and other products, a development that has resulted in sharp declines in the price of crude oil and other commodities.

While some are worried that the price retreat could raise the prospect of a deflation, a prolonged bout of falling prices, most economists believe that current conditions are not likely to set the stage for such a development, which last occurred in the U.S. during the Great Depression.

Over the past 12 months, consumer prices have risen by 3.7 percent. That is substantially below the 17-year high of a 12-month price increase of 5.6 percent set this summer. Core prices are up 2.2 percent over the past 12 months.

This price moderation is giving the Federal Reserve the room it needs to cut interest rates to battle the economic slump. The central bank is expected to cut the federal funds rate, the interest that banks charge each other, down to 0.5 percent at its December meeting, even lower than the 1 percent where the funds rate stands currently. The 1 percent funds rate ties the record low for the past half century.

For October, energy prices fell by a record 8.6 percent, led by a record 14.2 percent drop in gasoline prices. Since prices at the pump have continued to fall this month, analysts are looking for a big decline in energy costs in November as well.

The nationwide average for regular gasoline now stands at $2.07, down 33 cents since the start of the month, according to the Energy Information Agency, and well below record-highs above $4 per gallon this summer.

Food costs rose 0.3 percent in October, just half the increase of September, as dairy products and fruit showed declines. Food prices are still 6.1 percent above where they were a year ago, reflecting big increases in past months as grocery stores hiked costs to reflect the higher cost of transportation.

Excluding food and energy, consumer prices fell by 0.1 percent, the first decline in core prices since a similar drop in December 1982 as the country was battling the effects of a severe recession.

Many analysts believe the current downturn will be the worst recession since the 1981-82 slump.

The big drop in inflation meant workers got a break in their discretionary incomes although average weekly earnings, after adjusting for inflation, were still down by 0.9 percent from a year ago. However, that was smaller than the 2.5 percent decrease seen in the prior two months.


http://finance.yahoo.com/news/Consumer-prices-drop-record-1-apf-13617402.html

Just as an FYI, I read an article earlier this morning (sorry, don't remember where) that Target is going to be aggressively competing with Walmart this holiday season. Essentially, they are saying they are going to match or be lower than Walmart on IDENTICAL items and be highly competitive on similar items. They also said that the are going to having 6 items per day on their website that are going to have an incredibly low sales price.

Bad news for the retailers, but good news for those of who are struggling a little right now.

Cool. I live by a Target.

Yeah, my Target's about 5 minutes away, closest Walmart takes 30 minutes in good traffic and we NEVER have good traffic. It's just nice to know there's a little bit of choice since my Christmas budget is pretty tight this year.

That Target and Walmart sound like me. My Target's 5 min. away and Walmart is about 20 min. with traffic.

It's odd to me that Walmarts aren't inside city limits.

With prices going up, money does get tighter. I have a child to buy for. And Quickstepper says that they aren't stocking up. That's troubling. I haven't been shopping yet.

I haven't either, gotta wait for my year end bonus. I have my son, who's 13 and getting expensive, and my boyfriend's 2 daughters who are 3 and 5, not to mention assorted nephews and one niece. This will definitely be a help.

I have both around me...actually the walmart was so far but they just opened one right near me.

I'm tellin' yu tho...I've been out there & no one is shopping & the stores are not stocking up. Even the new walmart was sorta...blah! I guess I'll have to try the target by where I work.

Many people are afraid to spend money. Their futures are so uncertain that they are holding on to all they can. It's a tough world out here for those on fixed and low to moderate incomes. The big stores have a pretty good pulse on what's going on. Why stock what you can't sell?

The store I work at is stocking up, but not like it would be if the economy is doing well. They're stocking up on pallets and pallets of bottled water and the backstock shelves are full of canned goods. As for materialistic crap, they have stocked some of that, but it is black friday soon, so I guess we'll see what they do after the Friday of Doom.

bad economy is good for the people that are broke anyway

it is only bad for those that lose there jobs and are not prepared

Suz,

I heard this on NPR radio yesterday. They talked about Walmart and Target and Christmas shopping.

They said that they ordered their goods last year. They are expecting people to spend less so they are raising their prices on toys to recoup what they spent.

You read one story and I heard a different story. I'm sure hoping your article is the way it will happen.

They want us all to be afraid. I think we should just enjoy the holidays & not get sucked into all the doom & gloom.

Where are these price drops anyway? I'm pretty sure prices are just as high if not higher than last year, with the exception of gas.

Well, I have to disagree with you, both. It may be comfortable in your world, but the people around me are struggling. I don't see it as doom and gloom, I see it as reality for the many people. Our wasteful spending from the top to the bottom is what got us into this mess. I plan to cut-back on my spending this year, not because I can't afford it, but because it has gotten out of control. I thinking my Christmas and that of my child and grand children will be just as merry!
Happy Thanksgiving to all!