Energy prices drop cost of living in US by most since 2008


BLOOMBERG: November marked the largest fall in the consumer-price index, which adjusted downward 0.3 percent.

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BLOOMBERG: November marked the largest fall in the consumer-price index, which adjusted downward 0.3 percent.

Persistently low inflation allows Fed policy makers, scheduled to end a two-day meeting Wednesday, to exercise patience in raising the benchmark interest rates that they’ve held near zero since 2008 to spur growth and trim unemployment. Plunging fuel costs also will free up money that households can spend on other goods and services, bolstering the economic expansion.

“Inflationary pressures are temporarily on the backburner,” Robert Stein, deputy chief economist at First Trust Portfolios LP in Wheaton, Illinois, said before the report. “The Fed will probably take its time to raise rates.”

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