Geewax: Bargains Aren't Luring Skittish Shoppers,

Bargains are out there, but shoppers don't care. reports Marilyn Geewax in a weekend business report on National Public Radio.

Geewax, who has covered the national economy from the Cox Newspapers Washington bureau, joined National Public Radio’s national desk in December, 2008 as the new senior business editor.

Geewax reports that two government reports on consumer prices and retail sales showed shppoers are skittishk.

“The Labor Department, which keeps track of prices, said the Consumer Price Index dropped 0.4 percent over the past year. That was the first time since 1955 that the government recorded a 12-month price decline.

“Some of the bargains included gasoline, airfares, hotel rooms and houses. Grocery prices were especially attractive. Last spring, eggs, milk, corn, tomatoes and lots of other foods were going up in price, almost by the day. It's a very different story now. In March, the cost of food eaten at home fell by 0.4 percent. Some of the price drops were dramatic. For example, in March 2008, a dozen Grade A eggs cost $2.20. This March, the price was down to $1.69.

“A separate Labor Department report showed wholesale prices fell 1.2 percent last month, suggesting that retail prices likely will continue to decline this spring.

“But even with all of the price breaks, shoppers are too frightened to spend money. A Commerce Department report showed retail sales unexpectedly dropped in March for the first time in three months. Purchases fell 1.1 percent, with declines affecting almost every sector, including car dealers, electronics stores and restaurants.

Retailers have been trying to drum up business by offering various incentives and promotions. But customers are hanging back because of their fear of rising unemployment and their reduced ability to get credit.’

Click on the headline to read her report.