Fiji Time: 2:45 AM on Monday 27 February

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 0.64440.6254
JPY 55.991852.9918
GBP 0.39020.3822
EUR 0.46380.4518
NZD 0.68630.6533
AUD 0.63990.6149
USD 0.49320.4762

from

$0.00

Exchange Rate updated on 24th February, 2017

Today's Most Read Stories

  1. Angry passengers disembark from smoke-filled bus
  2. 5.1 magnitude earthquake occurs in local region
  3. 143 cases of dengue
  4. Voter trend
  5. Tears of joy, relief
  6. Baber positive
  7. The first settlers of Gau
  8. Husbands' support vital, says Vuniwaqa
  9. Yuen: Change diets and maintain a healthy lifestyle
  10. Beware, warns LTA

Top Stories this Week

  1. School girl, 14, dies Saturday (25 Feb)
  2. Family given son's post mortem exam results Monday (20 Feb)
  3. 2 dead in 48 hours Wednesday (22 Feb)
  4. Qoro resigns as exchange boss Tuesday (21 Feb)
  5. $95,000 payout Monday (20 Feb)
  6. $30,000 richer Thursday (23 Feb)
  7. Day of fate Monday (20 Feb)
  8. Locally owned health centre begins operation Friday (24 Feb)
  9. Bravery medal for boy, 6 Saturday (25 Feb)
  10. Nightmare continues for elderly woman Monday (20 Feb)