Reply #19: Consumer Prices in U.S. Probably Fell in August on Cheaper Fuel

[ozymandius]

Sept. 16 (Bloomberg) -- Prices paid by U.S. consumers probably dropped in August for the first time in almost two years as fuel costs retreated and retailers discounted merchandise, economists said before a government report today.

The cost of living dropped 0.1 percent after jumping 0.8 percent in July, according to the median forecast of 75 economists in a Bloomberg News survey. Excluding food and energy, so-called core prices likely rose 0.2 percent following a 0.3 percent increase the prior month.

The diminishing threat of inflation may make it easier for Federal Reserve policy makers today to lower interest rates to mitigate the damage from the collapse in credit that brought down Lehman Bothers Holdings Inc. Companies such as General Motors Corp. and J.C. Penney Co. are offering discounts to revive sales.

http://www.bloomberg.com/apps/news?pid=20601103&sid=atAGtERtW_Ok&refer=us

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I am curious to see what they "cook" up.