Energy costs drive drop in CPI

05.17.09
By Lewis Green

Although many households are struggling with debt management, a recently released economic indicator shows that consumer prices paid over the month dropped.

The government released its latest reading of the Consumer Price Index - an inflationary measurement tool that looks at the cost of a fixed set of goods and services - on Friday and noted that the indicator increased 0.2 percent in April and was relatively unchanged on a seasonally adjusted basis.

But looking at the full year, the index has made its first decline since 1955.

According to the Bureau of Labor Statistics, "This index has fallen 0.7 percent over the last 12 months, due primarily to a 25.2 percent drop in energy prices."

While some families are keeping an eye on the broad economy and monitoring reports on expectations for inflation, others are more focused on job security and benefits.

Many households have been suffering with one or two income-earners losing their job or being forced to take a reduction in salary, but some say they will willingly see their salary cut.

A new survey from Citrix Online shows that 75 percent of workers are interested in the flexibility of working from home. Some are so intrigued by the idea of working remotely, that they are willing to forego 5 percent of their salary in exchange for working offsite one or two days a week.

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Consumer prices remained relatively unchanged