Wednesday, April 14, 2010

Several factors drive price change during recession

If there is a silver lining in the dark cloud of an economic recession it's that price inflation is either nonexistent or negative. All else being equal, the increased unemployment and loss of wages associated with recession puts downward pressure on prices as demand for goods and services drops.

Although it may not seem like it to most consumers, overall price changes as measured by the Consumer Price Index (CPI) have been flat or negative during the most recent recession.

But prices for all products and services have not moved uniformly. Some prices rose, some fell, and others stagnated. Since the CPI is separated into components, we can look for the products and services that are driving the overall direction of prices...

TO FIND OUT what prices went what direction, and to learn more about inflation, you can check out this Oregon Labor Trends article, written by Brian Rooney!

Brian is a regional economist working in the Eugene field office. He can be reached at (503) 686-7703 or

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