Low gas prices dip into Consumer Price Index over winter

A new report from the government shows that consumer prices declined in February.

Don’t feel bad if it slipped your notice when you were shopping at the store. In fact, most consumer prices keep rising (as usual). It is just that the price of gas dropped a bit, which pulled down the government’s Consumer Price Index.

Therefore, the Consumer Price Index for All Urban Consumers (CPI-U) declined 0.2 percent in February on a seasonally adjusted basis.

Cheaper energy prices have done a lot to tame inflation over the past year: Over the last 12 months, the all items index increased just 1 percent before seasonal adjustment.

There’s no denying that we feel the difference between $4 per gallon and $2 per gallon at the pump. Even people who don’t drive experience a benefit from cheaper energy prices, since energy costs are a big factor in the price of all sorts of things.

Be better prepared for rising costs. Attend one of Travis Credit Union’s free seminars on money management. Visit our Free Seminars Calendar at www.traviscu.org to learn more.

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