US Inflation Rises Slightly in February

A slight rebound in gasoline prices and rising costs in other areas boosted U.S. consumer prices in February, a sign that inflation might be stabilizing.

A report Tuesday from the Labor Department shows consumer prices rose two-tenths of a percent for the month, after declining previously.  Consumer prices for the past 12 months were unchanged.

U.S. oil prices fell sharply from June to January, and the savings rippled through the entire economy, keeping prices in check.

Inflation is below the 2 percent annual rate that U.S. central bank experts say is healthy for the economy.  As the Federal Reserve tries to guide the economy, it aims for full employment and stable prices.

The Fed encouraged growth during the financial crisis by cutting the key interest rate nearly to zero.  Now that the job market and economic growth have improved, the Fed is trying to gauge when and how much to raise the rate.

PNC Bank senior economist Gus Faucher predicts that inflation will rise over the next couple of months.  With inflation moving toward the 2 percent target, he says the Fed will probably raise rates in mid-2015. [Read More]

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Source: VOA News: Bangladesh


 

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