Tuesday, October 16, 2012

Prices up, earnings down

According to the BLS release dated October 16,

CPI for all items increases 0.6% in September as gasoline prices rise

while at the same time 

The conclusion one can draw from this data would be that less goods and service were consumed in the month, or alternatively stated, that real PCE actually declined if consumers didn't take on additional debt.  In any case the American consumer is getting the screws tightened.

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