Markets dip in response to April inflation data
From the front page of today's WSJ: An April rise in consumer prices sent shock waves through financial markets, pushing the Dow Jones Industrial Average down 214.28 points, as worries grew that the Federal Reserve could face a tough battle with inflation in coming months.
The nation's average retail prices of goods and services climbed a seasonally adjusted 0.6% in April, up from 0.4% in March, and rising at a 3.5% annual rate, the Labor Department reported. The monthly increase was led by a 3.9% jump in energy prices. Economists, however, paid more attention to a steeper-than-expected gain in the prices of services, such as rent. Rising services prices helped push up "core" consumer prices -- a widely watched measure that excludes food and energy -- by 0.3%. That was the second consecutive monthly reading to exceed consensus forecasts. Core prices in April were up 2.3% from a year earlier -- near the top end of the Fed's comfort zone -- exceeding March's year-to-year increase of 2.1%.
Read the whole article HERE
The nation's average retail prices of goods and services climbed a seasonally adjusted 0.6% in April, up from 0.4% in March, and rising at a 3.5% annual rate, the Labor Department reported. The monthly increase was led by a 3.9% jump in energy prices. Economists, however, paid more attention to a steeper-than-expected gain in the prices of services, such as rent. Rising services prices helped push up "core" consumer prices -- a widely watched measure that excludes food and energy -- by 0.3%. That was the second consecutive monthly reading to exceed consensus forecasts. Core prices in April were up 2.3% from a year earlier -- near the top end of the Fed's comfort zone -- exceeding March's year-to-year increase of 2.1%.
Read the whole article HERE
posted by Celia at 9:12 AM
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