U.S. Consumer-Price Index Unchanged; Core Rate Climbs 0.2% (Update 2)
By Timothy R. Homan - May 15, 2012 8:43 AM
A measure of the U.S. cost of living was unchanged in April, restrained by a drop in energy prices and supporting the view of some Federal Reserve policy makers that inflation will ease.
Last month’s consumer-price index matched the median forecast of economists surveyed by Bloomberg News and followed three straight gains that included a 0.3 percent rise in March, Labor Department data showed today in Washington. The so-called core measure, which excludes more volatile food and energy costs, rose 0.2 percent for a second month.
Some companies are holding the line on prices as job growth shows signs of cooling, limiting wage gains. Slowing inflation would underscore views of some Fed officials who have said higher fuel costs will have only a temporary effect, allowing the central bank to stick to its plan to keep interest rates low at least until late 2014.
“There’s a lot of slack in the economy,” said Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida. Inflation is “sort of at the sweet spot as far as the Fed is concerned. The recovery is on track but it’s not especially strong.”
Retail sales rose in April at the slowest pace of the year, showing mild weather and early Easter shopping may have pulled consumers to stores in the previous month, according to other data today. The 0.1 percent gain followed a 0.7 percent increase in March, Commerce Department figures showed.
more @ Bloomberg.com
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