Wednesday, April 14, 2010

Low Increase in Cost of Living Shows Signs of Jobs, Economic Recovery

Consumer prices went up only a tenth of a percentage point in March, with the cost of living rising over the past 12 months at its slowest rate in six years.

The economy seems to be slowly coming out of a recession, and the only slight increase in the cost of living accelerates a recovery, said Syracuse University Economics Professor Donald Dutkowsky (above right, from Maxwell School website).

"The significance is the inflation is not a problem, and that's good, because it leaves the federal reserve the freedom to focus on expanding the economy," Dutkowsky said.

The federal government can now focus on creating jobs, Dutkowsky said.

"Doing things that they can to stimulate job economy. Job creation and job addition and unemployment rate going down is usually the last thing to happen in a recovering economy."

The United States's 9.7 unemployment rate is still more than four percent higher than it should be, so there is a long road ahead to full economic recovery, Dutkowsky said.

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