Consumer Prices Leap Over Expectations
United States consumer prices went up by more than analysts expected in the month of March.
The Labor Department reported that costs of gasoline, food, medical care, insurance and housing all went up. The consumer price index for March increased by 0.6%. Economists were expecting 0.5%.
“The honest thing to say is that inflation has been rising for more than a year,” said John Silvia of Wachovia Bank. “It’s not roaring inflation like you saw in the 1970’s, but it clearly is rising, which means the cost of living for households is rising, and for investors, the rate of return on C.D.’s or bonds or whatever the investment is, this is cutting into your profit.”
A New York Times article says, “Today’s report on consumer prices indicated that inflationary pressures may be growing faster than were indicated on Tuesday in a report on March wholesale prices. That report showed producer prices rising 0.7 percent over all but only a slight 0.1 percent when energy and food costs are excluded.”
The core rate went from an 0.3% increase in February to 0.4% in March.
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