Inflation increases in America
Source: Agencies |
June 16, 2011, Thursday
|
Print Edition
Print Edition
CORE consumer inflation in the United States rose at its quickest pace in nearly three years in May and a regional manufacturing gauge contracted this month, underscoring the headwinds facing the economy.
The US Labor Department said yesterday its Consumer Price Index, excluding food and energy, increased 0.3 percent, the largest gain since July 2008, after rising 0.2 percent in April.
Core inflation was lifted by steep rises in motor vehicle and apparel prices, and economists had expected the measure, which is closely watched by the Federal Reserve, to rise 0.2 percent last month.
The year-over-year core inflation index rose 1.5 percent in May from 1.3 percent in April.
Overall CPI increased 0.2 percent, slowing from a 0.4 percent advance in April, as gasoline prices fell. That compared with expectations for a 0.1 percent gain.
But in the 12 months to May, consumer prices rose 3.6 percent, the biggest jump since October 2008, and well above expectations for a 3.4 percent increase.
Separately, the New York Fed's "Empire State" general business conditions index fell to -7.79, contracting for the first since November, from 11.88 in May, surprising economists who had expected a rise to 12.50.
"I assume people will look at this as another reason the recovery is stalling, giving more fodder to the double dip theory," said Paul Radeke, vice president at KDV Wealth Management in Minneapolis.
"However, other data has shown that the consumer remains on track, suggesting that eventually manufacturing will catch up. However, this data suggests that process will take longer."
The data puts the Fed in a difficult position since the rising underlying inflation would make it more difficult to argue for further monetary stimulus even if the economy weakens substantially.
The US central bank concludes a US$600 billion government bond-buying plan at the end of the month. Policy makers, who have faced intense criticism for risking inflation, have set the bar very high for any new program to aid the fragile economy.
The US Labor Department said yesterday its Consumer Price Index, excluding food and energy, increased 0.3 percent, the largest gain since July 2008, after rising 0.2 percent in April.
Core inflation was lifted by steep rises in motor vehicle and apparel prices, and economists had expected the measure, which is closely watched by the Federal Reserve, to rise 0.2 percent last month.
The year-over-year core inflation index rose 1.5 percent in May from 1.3 percent in April.
Overall CPI increased 0.2 percent, slowing from a 0.4 percent advance in April, as gasoline prices fell. That compared with expectations for a 0.1 percent gain.
But in the 12 months to May, consumer prices rose 3.6 percent, the biggest jump since October 2008, and well above expectations for a 3.4 percent increase.
Separately, the New York Fed's "Empire State" general business conditions index fell to -7.79, contracting for the first since November, from 11.88 in May, surprising economists who had expected a rise to 12.50.
"I assume people will look at this as another reason the recovery is stalling, giving more fodder to the double dip theory," said Paul Radeke, vice president at KDV Wealth Management in Minneapolis.
"However, other data has shown that the consumer remains on track, suggesting that eventually manufacturing will catch up. However, this data suggests that process will take longer."
The data puts the Fed in a difficult position since the rising underlying inflation would make it more difficult to argue for further monetary stimulus even if the economy weakens substantially.
The US central bank concludes a US$600 billion government bond-buying plan at the end of the month. Policy makers, who have faced intense criticism for risking inflation, have set the bar very high for any new program to aid the fragile economy.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
