Get more on getthedaily.com
Wholesale inflation increased 1.2-percent in July, according the US-Labor Department, and that has caused domestic costs to rise at the fastest rate in about 30-years. Core prices, which dont include food and energy, rose .7-percent in July, and consumer prices increased .8-percent over the same period. Beef and soft drink prices has the largest increase in 4-years while the cost of milk went up the most in 1-year. Although costs increased in July, August marked a decrease in prices. While some experts say that 1-month of decreasing prices does not automatically mean inflation will go down, other economists are somewhat hopeful saying that inflation will ease in coming months especially with the recent .2-percent lowered gasoline prices.
The dropping prices of US-homes is allowing more homes to be affordable, according to a new report released Tuesday. The National Association of Home Builders said that 55-percent of homes sold in the 2nd quarter of 2008 were purchased by families bringing in the US-median income of 61.5-thousand-dollars. This affordability amount for the average American income marks the highest rate since early-2004, plus, its linked to a steady interest rate and the 1-percent decline in median home-prices since last year.
With the latest economic crunch, General Motors Corporation is stepping up to the plate. The nations largest automaker announced Tuesday that it is extending its employee discount to customers for most 2008 and some 2009 models. The major markdown starts August 20th and runs through September 2nd. GM said the employee discounts vary by model but generally knock-down the pricetag to about 10-percent below MSRP. The company said the sale is to celebrate its 100th anniversary as well as help clear-out inventory. The first-time that GM offered the same employee discount to customers a few years ago, it received a 41-percent increase in monthly sales.
From GetTheDaily.com, Im Dana Ward. Thanks for watching the economic news update.