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labour and material costs down: could it be...deflation?

snigletsniglet
edited March 2008 in The Economy
Hmmm... Labour and material costs down? That sure doesn't sound very inflationary. Could it be that something else is underway in the economy?
Q. Along with land prices, have material costs dropped?

A. Labor costs, material costs, everything has dropped. We've been able to partner with our suppliers and subcontractors, and bring the cost of building our homes down. A lot of these subcontractors have worked with us for a long time, so we're trying to keep it going for a lot of people. We pass those savings to the consumer.

http://www.tcpalm.com/news/2008/mar/03/by-hugo-h-ottolenghiltbgtltigt/

Comments

  • rose-colored-coolaidrose-colored-coolaid
    Agreed, we're in a funny place right now where slowing economic activity should lower prices, but the crashing dollar will raise import costs (AKA every consumer good).
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