Consumer Prices rise.

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Summary
consumer prices rose in january because of high energy costs. Inflation has been flat over the past year. The labor departmant said consumer prices rose by 0.3 percent. This has never been done for the past 61 years. The possibility of deflation can ocur which can make a recession worse. The concern about deflation represents a marked shift. When soaring energy and food prices threatened to trigger inflation. Recession kept a lid on prices. They expect prices to rise between 0.3 to 1% this year .

Connections
This chapter talks about inflation and is defined as a general increase in the level of prices. But in the case above, consumer prices rose by 0.3 % and it is aable to be calculated on the basis of annual increase in this index. This is an example of cost push inflation because of how supply decreased. it results in higher prices.

Reflection
If the recession continues i think that the inflation percentage rate will be higher in the next annual calculations. Many food and consumer product companys should avoid price cuts because that will shrink consumer spending. Deflation or inflation will not be too big of a deal in ou r everyday lives, but the recession will keep a lid on prices. It is not surprising for inflation to happen since it hasnt happened for more than half a century.