Food and gas outstrip mild US inflation
Source: Agencies |
April 14, 2012, Saturday
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Print Edition
Print Edition
US consumers paid more last month for food and gas, but outside those volatile categories inflation was mild.
The Consumer Price Index rose 0.3 percent in March, the US Labor Department said yesterday. That's slower than February's 0.4 percent rise.
Gas prices increased at a slower pace than the previous month. Excluding food and gas, so-called "core" prices increased 0.2 percent in March.
Inflation has eased since last fall and is expected to stay mild. In 12 months that ended in February, prices rose 2.7 percent - below last year's peak year-on-year rate of 3.9 percent.
Core prices rose 2.3 percent in the 12 months ending in February, close to the Federal Reserve's inflation target of 2 percent.
Mild price increases leave consumers with more money to spend, which boosts economic growth. Lower inflation also gives the Fed more leeway to keep interest rates low.
Food prices rose last month but are moderating after sharp increases last year.
Gas prices are high but are starting to level off. Gas averaged US$3.91 per gallon nationwide on Thursday, 3 cents less than a week earlier.
And even though hiring has picked up, wages have barely kept pace with inflation. So many retailers can't charge more without losing some business.
Fed Chairman Ben Bernanke has acknowledged that rising gas prices have boosted inflation, but maintained that the increases are likely temporary.
The Consumer Price Index rose 0.3 percent in March, the US Labor Department said yesterday. That's slower than February's 0.4 percent rise.
Gas prices increased at a slower pace than the previous month. Excluding food and gas, so-called "core" prices increased 0.2 percent in March.
Inflation has eased since last fall and is expected to stay mild. In 12 months that ended in February, prices rose 2.7 percent - below last year's peak year-on-year rate of 3.9 percent.
Core prices rose 2.3 percent in the 12 months ending in February, close to the Federal Reserve's inflation target of 2 percent.
Mild price increases leave consumers with more money to spend, which boosts economic growth. Lower inflation also gives the Fed more leeway to keep interest rates low.
Food prices rose last month but are moderating after sharp increases last year.
Gas prices are high but are starting to level off. Gas averaged US$3.91 per gallon nationwide on Thursday, 3 cents less than a week earlier.
And even though hiring has picked up, wages have barely kept pace with inflation. So many retailers can't charge more without losing some business.
Fed Chairman Ben Bernanke has acknowledged that rising gas prices have boosted inflation, but maintained that the increases are likely temporary.
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