Inflation Slows But Still Poses Long-Term Threat
To the surprise of most consumers, the rate of inflation rose by a miniscule 0.1% in 2008, the smallest calendar-year increase in the consumer price index since 1954 and a marked decline from the 2007 inflation rate of 4.1%. The near-zero rate was a rapid reversal just a few months after inflation reached 17-year highs. Although most Americans will welcome lower prices on a variety of items after a turbulent 2008, the steep price drops also raised concerns for the already flagging economy. The continuing saga of consumer prices is not as simple as the year-end statistical reading suggests. It…