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Reports: US Inflation Likely to Ease, Housing Construction to Slow Down


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Economic reports indicate U.S. housing construction is likely to slow down, while inflation eases in the future.

Tuesday's report from the Commerce Department shows the number of permits issued for future home construction fell by more than one percent in September.

September also saw builders make a slight increase in breaking ground to begin new construction, but experts say that trend may end when government tax incentives for first-time home buyers expire at the end of November.

A key measure of future inflation by the U.S. Department of Labor shows prices paid to factories, farmers, and other producers fell six-tenths of a percent in September.

The figures indicate that inflation is tame, at least for the time being.

That will allow the U.S. central bank (Federal Reserve) to keep interest rates at their current very low levels for a while. The Federal Reserve uses low interest rates to stimulate the economy, and raises them to fight inflation.

Some information for this report was provided by AP and Reuters.

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