Inflation stays low

In the overall economy, there is no evidence of inflationary pressures bubbling to the surface, despite recent reports of a pick-up in the growth rate of wages and salaries in the U.S. The GDP inflation measure declined 0.

By Staff September 1, 1998

In the overall economy, there is no evidence of inflationary pressures bubbling to the surface, despite recent reports of a pick-up in the growth rate of wages and salaries in the U.S. The GDP inflation measure declined 0.2% during the first quarter of this year, and increased by a negligible 0.4% in the second quarter. This spell of low inflation has certainly been exemplified by the latest figures for producer prices. PRODUCER PRICE INDICES

Actual Annual change,%

June 98 1997 1998* 1999*

Intermediate goods 133.7 0.2 0.3 2.2

Finished goods 143.3 0.3 0.6 1.8

Mechanical power trans 157.6 2.2 1.9 2.5

Machinery and equip 125.1 -0.5 0.2 0.9

Material handling equip 131.1 1.8 1.4 2.2

Source: Bureau of Labor Statistics * Forecast: Cahners Economics