Monday, May 03, 2010

Here it comes US consumer inflation up two percent

Americans saw prices rise two percent in the year to March according to the Commerce Department's personal consumption expenditures index published on Monday. The FED  see broader inflation levels, as approaching the maximum the central bank normally considers sustainable.

Energy and food costs rose 18.7 percent against March 2009, up almost four percentage points compared with February. Without food and energy spending the inflation level remained stable at 1.3 percent.

Meanwhile the FED said last Wednesday  to keep historically low interest rates for an "extended period," amid "subdued" inflation trends.

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