U.S. inflation quickens to 8.5%, ratcheting up pressure on Fed
BNN Bloomberg
U.S. consumer prices rose in March by the most since late 1981, evidence of a painfully high cost of living and reinforcing pressure on the Federal Reserve to raise interest rates even more aggressively.
U.S. consumer prices rose in March by the most since late 1981, underscoring the painfully high cost of living and reinforcing pressure on the Federal Reserve to raise interest rates even more aggressively.
The consumer price index increased 8.5 per cent from a year earlier following a 7.9 per cent annual gain in February, Labor Department data showed Tuesday. The widely followed inflation gauge rose 1.2 per cent from a month earlier, the biggest gain since 2005.
Gasoline costs drove half of the monthly increase, while food was also a sizable contributor, as Americans paid more for vegetables, meats and dairy products.
Excluding volatile food and energy components, so-called core prices increased 0.3 per cent from a month earlier and 6.5 per cent from a year ago, due in large part to the biggest drop in used vehicle prices since 1969 and a deceleration in price growth in other merchandise categories.
Treasuries rose and the dollar erased an earlier advance to weaken after the data showed core inflation rose less than forecast. The S&P 500 index opened higher.
