US consumer prices continue to plummet
17-12-2008
US consumer prices plummeted again during November and construction starts on new homes slumped to a record low as the recession-hit economy lost momentum. The Labor Department said the Consumer Price Index dropped 1.7-percent in November, surpassing the previous record decline of one-percent set in October. The Commerce Department said housing starts dropped 18.9 percent to a seasonally adjusted annual rate of 625-thousand units -- from 771,000 units in October. The latest figures reflect the severe recession gripping the country and raise the pressure for the Federal Reserve to act decisively at a meeting which started a short time ago. Many analysts are tipping the FED will cut interest rates by up to half a percent.
