BY Jim Cline and Kate Kremer
Just last month, we noted that inflation appeared to be “trending downward” at that inflation at 2% or less might be the “new normal.” This week’s CPI report further reflects that downward trend.
BLS reported Wednesday that the October CPI had plummeted even further, largely led by a drop in energy prices. Over the past month, the National CPI index (W) dropped .3% from the previous month. For the past 12 months the Seattle and US inflation rates are as follows:
The drop in the Seattle index reflects, in large part, a decrease in energy prices over the past year. The Seattle index covers inflation for the Seattle Metropolitan area which includes the Counties of King, Kitsap, Thurston, Island, Snohomish and Pierce.
Here’s a chart of CPI for other inflation indices common used to negotiate Washington public sector contracts:
In our next CPI article, we’ll discuss the potential impact of these lower inflation reports on contract negotiations.
