Consumer Prices Plunge Most Since Dec 2008

Tyler Durden's picture

Great news: The prices consumers pay dropped 0.3% MoM in November - the biggest deflation since Dec 2008. Of course, The Fed will be in "considerable" panic mode at this data and may choose to crush the hope of so many that rate hikes are coming in mid-2015 as definitive evidence that the US economy is well on the road to recovery. Ex-Food-and-Energy, prices rose 1.7% YoY - slightly missing expectations of +1.8%. Of course, a big driver of this 'transitory' disinflation is a 10.5% YoY drop in Gasoline and 6.6% MoM drop in November. Despite this huge drop, and thge promises of various talking heads, airfares rose 1.36% in November (after also rising 2.39% in October) - so much for the benefits to the consumer.



The breakdown by component, showing the 6.6% plunge in gas prices, and the fuel oil index dropping 3.5% in November, its ninth consecutive decline.

Since everyone is most concerned by energy prices, here is what the BLS had to say:

The energy index declined for the fifth month in a row, falling 3.8 percent in November. The gasoline index continued to decrease sharply, falling 6.6 percent. (Before seasonal adjustment, gasoline prices fell 8.9 percent in November.) The fuel oil index fell 3.5 percent in November, its ninth consecutive decline. The gasoline index has fallen 10.5 percent over the last 12 months, and the fuel oil index has declined 10.1 percent. The index for natural gas also declined in November, decreasing 1.7 percent, but it has risen 3.2 percent over the last year. Electricity was the only major component index to rise in November; it increased 0.1 percent and has risen 2.8 percent over the past year.

So while gas prices dropped again, food rose, with the food index up 0.2 percent in November after increasing 0.1 percent in October.

The index for food at home rose 0.1 percent in November and has risen 3.4 percent over the past year. Indexes for major grocery store food groups were mixed in November, with three increases and three declines. The index for meats, poultry, fish, and eggs increased 0.6 percent in November after declining in October. The index for beef and veal rose 0.8 percent, its tenth consecutive increase. The index for nonalcoholic beverages rose 0.5 percent, and the index for other food at home increased 0.4 percent. In contrast, the fruits and vegetables index turned down, falling 0.7 percent in November after a 0.9 percent increase in October. The index for fresh vegetables rose 1.8 percent, but the fresh fruits index fell 2.9 percent. The indexes for dairy and related products and for cereals and bakery products both fell 0.2 percent. All six groups increased over the past 12 months, with increases ranging from 0.2 percent (cereals and bakery products) to 9.1 percent (meats, poultry, fish, and eggs.) The index for food away from home increased 0.4 percent in November, its largest increase since January 2012, and has risen 2.9 percent  over the past year.

And here is how everything else did:

The index for all items less food and energy rose 0.1 percent in November following a 0.2 percent increase in October. The shelter index rose 0.3 percent, with the rent index rising 0.3 percent and the index for owners' equivalent rent increasing 0.2 percent. The index for lodging away from home was unchanged in November. The index for medical care rose 0.4 percent in November, its largest increase since August 2013. The index for prescription drugs rose 0.6 percent, while the physicians' services index increased 0.5 percent. The airline fares index increased 1.4 percent after a 2.4 percent increase in October. The index for alcoholic beverages rose as well, increasing 0.8 percent. In contrast to these increases, the apparel index fell 1.1 percent and the index for used cars and trucks declined 1.2 percent. Several indexes posted more modest declines; the indexes for recreation, for household furnishings and operations, and for personal care all declined 0.2 percent, and the new vehicles index fell 0.1 percent. The index for all items less food and energy has risen 1.7 percent over the last 12 months. The shelter index rose 3.0 percent over that span, and the index for medical care increased 2.5 percent. Several indexes have declined over the last 12 months, including airline fares, used cars and trucks, household furnishings and operations, and recreation.

And now, back to the Fed.

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Ahoy Polloi's picture

The cost to remodel my cardboard box under the interstate just dropped. #WINNING!


With oil prices this low, I'm thinking about dousing it gasoline & setting it on fire to collect on the insurance money.

Jlasoon's picture

May I suggest Costco for future cardboard boxes. 

GetZeeGold's picture



Consumer Prices Plunge Most Since Dec 2008


Great news for people with 29.5 hr/wk jobs......which is a lot of people these days.

TruthInSunshine's picture

Pull up your Big Boy pants & raise interest rates, Mr. Yellen!

GetZeeGold's picture



If you want to commit suicide.....just do it.....don't involve the rest of us.

Bearhug Bernanke's picture

"Welcome to Costco. I love you."

Jlasoon's picture

"Ah, you talk like a fag, and your shit's all retarded." 

XAU XAG's picture

escape velocity.............................Miss

Hubbs's picture

But, but if the economy is slowing with lower Baltic Index, etc , and fewer items are being shipped, then that means fewer boxes available. The cost of replacing  your home will increase...unless it is priced like physical gold vs the ETF.

j0nx's picture

Lower prices? Where? Not seeing any myself.

Jlasoon's picture

I think I need another TV.

GetZeeGold's picture



Books are better for you. May I suggest this one?


John Boehner gives it 5 thumbs up.


Mitch McConnell......I peed myself.


Nancy Pelosi......I have the first edition copy signed copy by Lucifer and Hillary......really hard to find.


Elizabeth Warren.....never heard of it.

RyeWhiskey's picture

"I has teevee on everey waoul"

JRobby's picture

BUY IT NOW!!!!!  The 4 new features it has vs the same priced TV from 3 years ago will be used in the calculation to reducing CPI.

hairball48's picture

The best cardboard boxes come from IBM. A NYC bum interviewed on FOX years ago said so. IBM used good quality corrogated cardboard the bum said.



OceanX's picture


"...Pretty much you are only bound by your creativity, and the police"

Useful tips:



Silver Short Seller's picture
Silver Short Seller (not verified) Dec 17, 2014 8:39 AM

That's right deflation! When will ZH admit they are wrong?

Ahoy Polloi's picture

Beef Tenderloin: 2012 = $6.99 a pound

Beef Tenderloin: 2014 = $12.99 a pound

Ness.'s picture

ATT Uverse

2013 = $145/mo.

2014 = $205/mo

GetZeeGold's picture



Went to the store to buy some steak.....came back home with hamburger.

Esso's picture

Damn, you can afford hamburger?


You must be a 1%er.

JRobby's picture

AT&T is a horrible corporation. They should change their name to "Hostage Communication Empire"

pods's picture

That would be fitting but Time Warner has already copyrighted that.


Stuck on Zero's picture

My health plan: $6K more this year.

Jlasoon's picture

Simple don't eat, no inflation for you. 



2013 = $20/bottle

2014 = $1,849/bottle


Story was up here yesterday.

JRobby's picture


What does this cure / correct?

GetZeeGold's picture



Presidential sore throats?

Hubbs's picture

Probably one of my number one choices for antibitoics if we go back to third world conditions, along with flagyl ...ricketsial diseases, Lyme disease, bubonic plague. ( Too bad not as long a shelf life as other antibiotics.)

Bastiat's picture

What is that?  Some kind of antibiotic?

Bastiat's picture

Looked it up:  Tetracycline family, used to treat clap and some other VDs, also to prevent malaria.  Some nasty side effects.  Stay healthy, my friends.

CitizenPete's picture

Food and eating are soooo overrated.


Recent advert: "SALE - Save $26 on a bag of frozen lobster tails". Deals to be found.

A jumbo bag of farm raised GMO franken shrimp in my grocery store was on sale for just under $60.


Look online for the best recipes for Maryland fried cat food patties made with Old Bay spice and lemon peel fried in holy corn oil (that's the oil from the corns of a holy man).  Be certain to buy some extra toilet paper too.

begintowin's picture

That's the front end of retail price inflation the consumer pays. But what is not realized is the hidden inflation of smaller sized product packaging.

For example, ice cream used to be sold in 1/2 gallon (2 quarts) size packages. Now the shopper pays the same price or higher for only 1 1/2 quarts.  The shadow of stealth inflation is a double whammy for the consumer.

Glass Seagull's picture



IF: Fed raises rates in first-half 2015

THEN:  Full-blown deflation

ELSE:  Disinflation


aVileRat's picture


Bill Gross called it, and it looks like all those windfall consumer facing corps will be first into the woodchipper.


Ness.'s picture

Trading is so much easier now that data doesn't matter.  I just close my eyes and click.


Fuck you Ben and Janet.


AmCockerSpaniel's picture

So; You want to see inflation?  Just get sick, and need some med's. It's not 2013!

dirtyfiles's picture

I just get the electricity bill like 50%more


BeetleBailey's picture

Anyone belieiving the "numbers" spewed out anymore is a total doofus

blown income's picture

Shits and giggles 

Lafayette la to Bush in Houston tx


1 hour flight  245 miles 


blown income's picture

10 years ago used to go to Vegas on Southwest for $79


1607 miles...

JRobby's picture

Lower fuel costs drop right to the bottom line right? Just like bag fees.

Merry Christmas Peasants! :):