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Plunging Gas Prices Help Bring Some Relief to U.S. Economy

The Ledger -- WASHINGTON | A measure of U.S. consumer prices fell in May by the most since December 2008, pulled down by a plunge in gas prices. Excluding volatile food and energy costs, prices rose only modestly.

The Labor Department said Thursday that the consumer price index dropped 0.3 percent. Gas prices sank 6.8 percent, also the most since December 2008. Food costs were unchanged.

Mild price increases give consumers some relief at a time when unemployment is high and wage gains are meager. Lower inflation also gives the Federal Reserve more leeway to keep interest rates low.

So-called "core" prices, which exclude food and energy, rose 0.2 percent for the third consecutive month.

Over the past 12 months ending in May, consumer prices rose 1.7 percent, much less than the pace for the 12 months

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Submitted Jun 15, 2012 By: angel4me

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Amendes Champion Author Fresno Posts:2,535 Points:535,215 Joined:May 2011	Message Posted: Jun 18, 2012 8:17:11 AM Ignore Amendes Report Abuse OK
honda0105 Champion Author Tallahassee Posts:18,650 Points:1,612,445 Joined:Nov 2008	Message Posted: Jun 18, 2012 4:47:49 AM Ignore honda0105 Report Abuse not unless DIESEL drops. And it has barely budged while gasoline has dropped nearly 60 cents / gallon.
FunMyster All-Star Author Indiana Posts:907 Points:73,215 Joined:Jul 2011	Message Posted: Jun 15, 2012 12:39:54 PM Ignore FunMyster Report Abuse ok
sljbc475 Champion Author Tucson Posts:4,235 Points:875,300 Joined:Dec 2010	Message Posted: Jun 15, 2012 7:36:26 AM Ignore sljbc475 Report Abuse The prices still need to keep falling.
Caduceus26 Champion Author Jacksonville Posts:3,916 Points:766,385 Joined:May 2009	Message Posted: Jun 15, 2012 7:23:16 AM Ignore Caduceus26 Report Abuse Simple economics - less spending on gas leaves more $$$ to spend on other goods and products.
Bearcat500 Champion Author Cincinnati Posts:9,737 Points:1,634,120 Joined:Nov 2005	Message Posted: Jun 15, 2012 6:32:18 AM Ignore Bearcat500 Report Abuse Interesting and well written eomc17. Agree completely.
eomc17 Champion Author Tucson Posts:1,822 Points:134,145 Joined:Mar 2007	Message Posted: Jun 15, 2012 6:24:45 AM Ignore eomc17 Report Abuse I wouldn't call the reduction in gas prices "plundering" when the gas prices are well over a dollar too high. The price of oil has dropped over three times the percentage that the price of gasoline has dropped since 2008. Big oil has drastically increased their profit margin for gasoline since 2008, since they can no longer scam the world out of 147$ for a barrel of oil. I don't consider the current gas prices to offer us drivers any real relief when I know that the super-greedy speculators who are largely responsible for the outrageous gas prices are not being regulated the way they were before the catastrophic Bush commodity deregulation blunders under his watch. And Obama refuses to reverse any of these blunders himself. Now any cartel, big bank, foreign or domestic commodity trading company, and crafty career criminal speculators can buy oil or gasoline at countless trading markets all over the planet, hoard these commodities on hundreds of tankers going nowhere and in storage facilities on five continents, and keep prices high to pad their pockets at our expense. Think I am kidding? Do some research on Vitol and Glencore, just to name a couple of these huge foreign commodity trading companies. Much of last year, Vitol exported about as much oil as Saudi Arabia and Venezuela put together. Glencore has over 200 tankers going nowhere until the price is right for Glencore to consider delivering. Vitol stores a ton of oil, gas, and natural gas in storage facilities on five continents. And the USA cannot regulate these greedy companies in any way shape or form. Vitol is based in Switzerland, not sure about Glencore, perhaps Holland or Belgium. If not for the catastrophic commodity trading deregulation from 2003 to perhaps 2008, WTI, Brent, and RBOB gasoline would still be traded exclusively at Wall Street, with regulations drastically curbing speculation and having set position limits any speculator could hold at one time, which kept oil and gas prices at truly acceptable levels until 2003. By then, some of the deregulation had already taken place, and big oil and speculators have been robbing us of trillions of dollars since then. [Edited by: eomc17 at 6/15/2012 7:30:06 AM EST]
ystr Champion Author New Jersey Posts:1,732 Points:350,615 Joined:Apr 2012	Message Posted: Jun 15, 2012 6:21:23 AM Ignore ystr Report Abuse Relief?
jwalkerh Champion Author Louisiana Posts:6,145 Points:1,369,580 Joined:Oct 2008	Message Posted: Jun 15, 2012 6:17:44 AM Ignore jwalkerh Report Abuse Really???
Tacodan Champion Author Cincinnati Posts:2,342 Points:657,360 Joined:Apr 2011	Message Posted: Jun 15, 2012 6:03:34 AM Ignore Tacodan Report Abuse what planet is he on ?
ReddevilNO Champion Author New Orleans Posts:3,386 Points:583,740 Joined:Aug 2011	Message Posted: Jun 15, 2012 5:56:59 AM Ignore ReddevilNO Report Abuse Yeah, Right. Are you kidding me.
Jebeahm Champion Author Maryland Posts:1,252 Points:461,030 Joined:Mar 2011	Message Posted: Jun 15, 2012 5:55:19 AM Ignore Jebeahm Report Abuse NOT
INBwana Champion Author Indiana Posts:5,486 Points:698,910 Joined:Apr 2011	Message Posted: Jun 15, 2012 5:46:54 AM Ignore INBwana Report Abuse PLUNGING! PLUNGING? This is a bunch of cowabunga!
HDFXR1991 Veteran Author Wisconsin Posts:469 Points:141,030 Joined:Sep 2008	Message Posted: Jun 15, 2012 5:43:55 AM Ignore HDFXR1991 Report Abuse Plunging? Where? Aint here.... It is going back up!
99flyer Champion Author Sacramento Posts:11,356 Points:2,572,785 Joined:Nov 2004	Message Posted: Jun 15, 2012 5:43:51 AM Ignore 99flyer Report Abuse Plunging? Really? Must be some good stuff being smoked in Washington.
nb52 Champion Author Grand Rapids Posts:7,795 Points:1,549,775 Joined:Nov 2008	Message Posted: Jun 15, 2012 5:41:32 AM Ignore nb52 Report Abuse Where is this writer getting their pump price information?
fordfan1 Champion Author Indiana Posts:9,107 Points:1,893,940 Joined:Jul 2007	Message Posted: Jun 15, 2012 5:40:44 AM Ignore fordfan1 Report Abuse Not here in Northeast Indiana are we seeing any relief at the pump!!!!! The prices have shot up nearly 50 cents a gallon over the last week!!!!
TravelinMan52 Champion Author Augusta Posts:1,940 Points:966,570 Joined:May 2008	Message Posted: Jun 15, 2012 5:40:24 AM Ignore TravelinMan52 Report Abuse I guess there's a time gap in those plunging prices. I can hardly wait till they do start though.
GearGuy All-Star Author Detroit Posts:727 Points:1,764,445 Joined:Oct 2006	Message Posted: Jun 15, 2012 5:40:22 AM Ignore GearGuy Report Abuse We are not much cheaper here, so journalistic license to use the word "plunge"?
prcoqui Champion Author Maryland Posts:3,960 Points:1,675,900 Joined:Dec 2006	Message Posted: Jun 15, 2012 5:39:33 AM Ignore prcoqui Report Abuse Sounds good.
swede Champion Author Cleveland Posts:3,782 Points:1,678,925 Joined:Feb 2003	Message Posted: Jun 15, 2012 5:38:31 AM Ignore swede Report Abuse I won't say that but it has given the people a little bit more financial breathing room.
Zuman Champion Author New York Posts:6,179 Points:1,901,605 Joined:May 2005	Message Posted: Jun 15, 2012 5:38:10 AM Ignore Zuman Report Abuse There not plunging .
kobes1 Champion Author Florida Posts:2,507 Points:560,535 Joined:Aug 2011	Message Posted: Jun 15, 2012 5:37:22 AM Ignore kobes1 Report Abuse Up and down
LoneGuy Champion Author Lansing Posts:8,495 Points:2,320,920 Joined:Aug 2005	Message Posted: Jun 15, 2012 5:37:19 AM Ignore LoneGuy Report Abuse It won't last until we seek resources in our own country. Obama and the environmentalists won't let us.
sappie Champion Author Massachusetts Posts:3,506 Points:588,320 Joined:Jul 2010	Message Posted: Jun 15, 2012 5:36:56 AM Ignore sappie Report Abuse only temp.
SpruceGuse2 Champion Author Michigan Posts:9,749 Points:2,457,610 Joined:Mar 2006	Message Posted: Jun 15, 2012 5:36:06 AM Ignore SpruceGuse2 Report Abuse A momentary fix for a permanent problem..............
KentsterPA Champion Author Pennsylvania Posts:1,717 Points:552,800 Joined:Aug 2011	Message Posted: Jun 15, 2012 5:35:39 AM Ignore KentsterPA Report Abuse Should be helping more than it seems to be.
scottydoesnt Champion Author Chicago Posts:3,797 Points:529,995 Joined:Apr 2011	Message Posted: Jun 15, 2012 5:35:20 AM Ignore scottydoesnt Report Abuse "Plunging" ? Gas hasn't dropped here at all. IO don't consider paying $3.89 per gallon, plunging.
germainesr Champion Author Columbia Posts:1,146 Points:353,585 Joined:Sep 2008	Message Posted: Jun 15, 2012 5:35:09 AM Ignore germainesr Report Abuse I don't feel relief
DrCashFlow Champion Author Massachusetts Posts:7,079 Points:1,630,050 Joined:Jun 2008	Message Posted: Jun 15, 2012 5:34:55 AM Ignore DrCashFlow Report Abuse Next Recession is here
mandoid Champion Author Colorado Springs Posts:7,314 Points:1,529,935 Joined:May 2008	Message Posted: Jun 15, 2012 5:34:06 AM Ignore mandoid Report Abuse elections have consequences
knifeman9 Champion Author North Carolina Posts:5,695 Points:1,490,315 Joined:Oct 2008	Message Posted: Jun 15, 2012 5:34:03 AM Ignore knifeman9 Report Abuse I am afraid its too little too late.
toolman3md All-Star Author Maryland Posts:533 Points:358,730 Joined:Apr 2012	Message Posted: Jun 15, 2012 5:33:18 AM Ignore toolman3md Report Abuse Price will fall until the day after the November elections.
Ratso Champion Author Ohio Posts:18,817 Points:2,687,520 Joined:Sep 2003	Message Posted: Jun 15, 2012 5:33:08 AM Ignore Ratso Report Abuse Plunging?? Not in Ohio , they are soaring..up .40 / gal in less then a week ! Collusion ? oh yeah...
RockCity Champion Author Denver Posts:7,926 Points:1,430,785 Joined:Mar 2009	Message Posted: Jun 15, 2012 5:32:06 AM Ignore RockCity Report Abuse Wowsers, when the top folk make 400 times more than the common folk it would seem that the top folk need to buy 400 cars a piece and the gas to fill 'em up. While the top folk cry all the way to the bank and tell those common folk not only do we need a smaller salary but we should pay their taxes. And 'the people' say, that sounds about right coach, perhaps.
jppezz Champion Author New Mexico Posts:8,606 Points:1,695,485 Joined:Jun 2008	Message Posted: Jun 15, 2012 5:31:53 AM Ignore jppezz Report Abuse Let's see how much longer they fall.
turbosaab Champion Author Cleveland Posts:19,009 Points:2,339,320 Joined:Sep 2006	Message Posted: Jun 15, 2012 5:31:25 AM Ignore turbosaab Report Abuse Prices aren't plunging here.
ChristinaCricke Champion Author New Jersey Posts:3,758 Points:770,500 Joined:Mar 2011	Message Posted: Jun 15, 2012 5:31:12 AM Ignore ChristinaCricke Report Abuse What a mess!
SUNOIL Champion Author Toledo Posts:5,260 Points:1,928,930 Joined:Jul 2007	Message Posted: Jun 15, 2012 5:30:31 AM Ignore SUNOIL Report Abuse Should be much lower.
lenasdude All-Star Author Alaska Posts:970 Points:1,014,855 Joined:Jun 2005	Message Posted: Jun 15, 2012 5:29:31 AM Ignore lenasdude Report Abuse too little, too late for some.....
Steady325 Champion Author Orange County Posts:2,593 Points:1,462,010 Joined:Nov 2008	Message Posted: Jun 15, 2012 5:29:22 AM Ignore Steady325 Report Abuse long way to go
radstoy Champion Author Pennsylvania Posts:16,459 Points:3,220,705 Joined:Feb 2003	Message Posted: Jun 15, 2012 5:29:02 AM Ignore radstoy Report Abuse just wait
RADIOCANADA499 Champion Author Ontario Posts:2,351 Points:779,855 Joined:Aug 2005	Message Posted: Jun 15, 2012 5:28:48 AM Ignore RADIOCANADA499 Report Abuse Cool!!!
29louieson Veteran Author Phoenix Posts:310 Points:151,700 Joined:Mar 2012	Message Posted: Jun 15, 2012 5:28:35 AM Ignore 29louieson Report Abuse This relief is squat !
Joeski1 Champion Author New Jersey Posts:10,017 Points:1,744,760 Joined:Dec 2004	Message Posted: Jun 15, 2012 5:28:01 AM Ignore Joeski1 Report Abuse Not much but some
cigarman409 Champion Author Massachusetts Posts:4,451 Points:1,829,560 Joined:Jul 2007	Message Posted: Jun 15, 2012 5:27:28 AM Ignore cigarman409 Report Abuse not much help at all waitin for it to climb again in fall
madison8359 Champion Author Cleveland Posts:9,049 Points:1,596,220 Joined:Apr 2008	Message Posted: Jun 15, 2012 5:26:46 AM Ignore madison8359 Report Abuse Overall very little relief.
gch42 Champion Author Georgia Posts:11,839 Points:2,078,220 Joined:Feb 2006	Message Posted: Jun 15, 2012 5:26:46 AM Ignore gch42 Report Abuse need to plunge some more
GLM4205 Champion Author Toledo Posts:4,072 Points:803,220 Joined:Dec 2010	Message Posted: Jun 15, 2012 5:26:34 AM Ignore GLM4205 Report Abuse No change here it's still 3.79
bridgerunner Champion Author Virginia Posts:4,802 Points:1,009,760 Joined:Jul 2009	Message Posted: Jun 15, 2012 5:26:03 AM Ignore bridgerunner Report Abuse OK.