Fiji Time: 10:24 PM on Tuesday 21 October

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.

Today's Most Read Stories

  1. Public access
  2. Inside Fiji sevens
  3. Forgery suspect still in remand
  4. Accused on the run
  5. The murder of the Alankar jeweller
  6. Fiji beats Lebanon, players ready to face Murri at home
  7. 'Get to know your breasts'
  8. TB cases expected to increase
  9. Marks scaling review
  10. Reflect and re-examine

Top Stories this Week

  1. False rumours warning Friday (17 Oct)
  2. Unknown Tuwai stands out in Gold Coast tournament Wednesday (15 Oct)
  3. Death shocks family Monday (20 Oct)
  4. Fiji removes all doubts Wednesday (15 Oct)
  5. Biman gets nod Saturday (18 Oct)
  6. Law and order Thursday (16 Oct)
  7. Detailed report Friday (17 Oct)
  8. THE NEW PRICES Wednesday (15 Oct)
  9. Public access Tuesday (21 Oct)
  10. Praises for Fiji sevens team after win in Australia Thursday (16 Oct)