AP: Prices in Atlanta continue to fall.
Prices in the Atlanta metropolitan area declined 1.1 % in October, while prices elsewhere in the U.S. rose by 0.1 %, according to the Bureau of Labor Statistics. Prices in the Southeast in general rose 0.2 %, as measured by the CPI, a widely used measure of inflation.
On an annual basis, prices in both the Southeast and in the U.S. as a whole are still down slightly from last year, at a rate of -0.2 and -0.4 respectively. In Atlanta, however, the price level has fallen by 2.6 percent since last year.
The price level decline in the Atlanta area has been driven largely by declines in the transportation and recreation industries. The transportation industry has experienced an 8 % deflation, and the recreation industry has had a 13.1 % deflation since this time last year. The Atlanta economy, which is a major transportation and air travel hub, has been hit hard by the recession, as consumers cut back on discretionary spending on travel and leisure activiites.
Even the medical industry in Atlanta has experienced a 2 % decrease in prices since last year. Atlanta is one of the few urban areas in which health care prices have actually decreased.
The Atlanta housing market, which has only experienced a decrease in prices of 1.2 % over the pst 12 months, took an even larger hit in October. Housing prices in the Atlanta area fell another 2.5 % in October.