Fiji Time: 1:51 AM on Wednesday 28 September

Fiji Times Logo

/ Front page / News

US inflation spike

Bbc
Tuesday, January 21, 2014

US consumer inflation spiked in December, driven higher by rising fuel prices. The consumer price index rose 0.3 per cent on a seasonally adjusted basis, the US Labour Department said.

Fuel prices jumped 3.1 per cent last month, their biggest rise since June, while food prices rose 0.1 per cent.

But grocery prices were flat as the cost of fruit and vegetables fell sharply, the biggest fall for five years, the Department said.

Despite December's blip, the annual rate of inflation fell from 1.7 per cent to 1.5 per cent, below the Federal Reserve's 2 per cent target rate. Inflation has been held in check by slow economic growth and high unemployment.

This gave the Fed leeway to carry out its $US85billion ($F159.68b)-a-month bond-buying program aimed at stimulating the economy.

Given that the recovery appears to be strengthening, the Fed has decided to begin tapering down the program, reducing the purchases to $US75b ($F140.89b) this month. But if inflation continues to fall, the timescale of the tapering process could be extended, as very low inflation removes one incentive to spend.








Fiji Times Front Page Thumbnail

Kaila Front Page ThumbnailFiji Times & Kaila Frontpage PDF Downloads

Use the free Acrobat Reader to view.

Westpac
Code Inward TTs Outward TTs
CAD 0.65420.6352
JPY 50.302747.3027
GBP 0.38000.3720
EUR 0.43940.4274
NZD 0.68690.6539
AUD 0.65110.6261
USD 0.49660.4796

from

$0.00

Exchange Rate updated on 27th September 2016

Today's Most Read Stories

  1. Rugby death
  2. Double trouble
  3. Aussies wary of Fijians
  4. PM attacks NFP
  5. Focus on iTaukei
  6. Pastor guilty of rape
  7. Locally-produced movie set to hit the big screens
  8. Ministry eyes foreign doctor recruitment
  9. Prove claims, MWH told
  10. Families without lots

Top Stories this Week

  1. Nurse is a lawyer Friday (23 Sep)
  2. Ali beats 'death sentence' Thursday (22 Sep)
  3. Road closure Saturday (24 Sep)
  4. Pastor makes case in rape trial Wednesday (21 Sep)
  5. Rugby death Tuesday (27 Sep)
  6. Rawaca out Sunday (25 Sep)
  7. Private jets attract attention at Nadi Airport Sunday (25 Sep)
  8. After Ben Ryan Thursday (22 Sep)
  9. Three Cavuilati, 6 Olympians in Fiji 7s squad Sunday (25 Sep)
  10. Police investigate rugby 7s organiser Monday (26 Sep)