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U.S. consumer prices rose triggered by the rising of fuel and food prices

U.S. consumer prices continued to rise in March as gasoline and food prices also raised, however, inflation remains low base, giving the Fed scope to maintain-easy money policy in place.

The consumer price index (CPI), seasonally adjusted last month rose by 0.5% from February, the Labor Department said on Friday (15 / 4). That’s after a monthly increase of 0.5% in February, which was also driven energy and food costs climbed. On an annual basis, prices rose 2.7% in March, its highest level since December 2009, highlighting the impact of stronger prices for oil, grains, metals and other global commodity inflation on the principal.

However, basic inflation, which excludes energy and food prices usually move volatile, rising only 0.1% in March from February. The annual inflation rate basis was at 1.2% last month, the Fed’s comfort zone just below 2.0%. Economists surveyed by Dow Jones Newswires expect the core CPI will rise 0.2%. Inflation of goods rose roughly at the level of 0.4%.

Decision makers at the Fed’s top officials, including Chairman Ben Bernanke, is not convinced the central bank had to rush to raise interest rates because of rising commodity prices which allow the temporary impact on inflation is widespread.

The report on Friday showed prices of gasoline and food together accounted for in three-quarter will rise. Energy index was rose 3.5% in March from February, the ninth monthly increase in a row. Global oil prices rose sharply in recent months amid unrest in the countries of North Africa and Middle East as oil producers. U.S. gasoline prices jumped 5.6% last month. Food prices rose a monthly 0.8% in March after rising 0.6% the previous month.

Meanwhile, average real weekly earnings fell by 0.5% during the month of March, in a sign of wage pressures are still weak, suggested little threat of inflation.

Short URL: http://www.usnews9.com/?p=6742

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