US inflation unexpectedly cools on prices for autos, drugs

Share
US inflation unexpectedly cools on prices for autos, drugs

This should make the FOMC comfortable with its recent decision to be patient on monetary policy, and await clearer signs on how slower global growth and weaker confidence shows up in domestic data in the months ahead.

U.S. Treasury yields drifted lower on Tuesday after data showed a modest rise in core inflation in February as well as the headline number on an annual basis, backing expectations the Federal Reserve will remain pat on any interest rate moves throughout the year.

Consumer price inflation for the rural areas stood at 1.81 per cent in February 2019 against 1.29 per cent in January, and 4.45 per cent in February 2018. A Reuters poll of economists had predicted a growth of 2 per cent for January.

In another set of data released by the Government, industrial production or factory output slipped to 1.7 per cent in January 2019 from 2.4 per cent in December 2018 on account of slowdown in the manufacturing sector.

Food price inflation for urban areas stood at 1.27 in February 2019 against (-) 0.96 per cent in January 2019 and 2.45per cent in February past year.

The January PCE price data will be released on March 19. Such figures give President Donald Trump another opportunity to claim credit for lower pharmaceutical prices, an issue that he's recently tweeted about several times.

In the 12 months through February, the core CPI rose 2.1%. The CPI increased 1.6% on a year-on-year basis in January.

Even on a month-on-month basis, the Index of Industrial Production (IIP) declined during the month under review from December 2018 when it stood at 2.60 per cent.

What matters here is that inflation has remained muted and is now handily under that 2.0% to 2.5% range that has been within the Federal Reserve mandate with some slight changes over time.

In a wide-ranging interview with CBS's 60 Minutes television news program, Fed Chairman Jerome Powell on Sunday reiterated the central bank's wait-and-see approach to further monetary policy tightening this year. It hit the US central bank's 2 percent inflation target in March a year ago for the first time since April 2012. This marks the strongest inflation-adjusted wage growth since November 2015, an increase that would likely help consumer spending and economic growth. But excluding food and fuel costs, the core CPI fell short of a forecasts, rising only 0.1 percent.

Prices of fruits (-4.62 per cent) and vegetables (- 7.69 per cent) continued to decline in February. That followed a 1.1 per cent jump in January. Consumers paid more for motor vehicle insurance, airline fares, household furnishings and personal care products.

Share

Advertisement

Related Posts

Google releases first Android Q beta for Pixel phones
One of the biggest issues facing foldable devices is how Android will adapt to the various modes when folded and unfolded. As part of its work in Project Strobe , Google is adding a number of new privacy and security features to Android Q.

Ethiopian Airlines flight carrying 157 people to Nairobi crashes, no survivors
Cockpit data indicated that the plane's airspeed indicator had malfunctioned on its previous four flights. It is believed the plane crashed just six minutes after take off from Ethiopia's capital, Addis Ababa .

Verizon Discloses Pricing for Its First 5G Mobile Service
The offer is available only on unlimited plans, which now start at $75 for one person or $160 for a family of four without 5G. To start the Moto Z3 with a 5G Moto Mod attached is the only device that can connect to Verizon's 5G network.

Hollywood actresses among dozens indicted in $25m United States college scam
Actress Lori Loughlin will be allowed to return to Vancouver to complete her contracted work on various Hallmark Channel projects. Court documents allege that Felicity Huffman , 53, paid $15,000 to secure her eldest daughter a place at university.

Drug Charge Results in Halted Sales of ‘Yakuza’ Spin-Off Game ‘Judgment’
One of its actors is Pierre Taki , who both voices and lends his likeness to organized crime boss Kyohei Hamura . It's not known if the suspension will affect the overseas release of the game, which was scheduled for June 25 .

New Zealand faces unsafe measles outbreak with 25 confirmed cases
The best protection is for people born after 1969 is to have had two MMR (measles, mumps and rubella) vaccinations. It is caused by a highly contagious virus that is spread through the air by breathing, coughing, or sneezing.

Beto O'Rourke announces 2020 run for presidency
Despite O'Rourke's narrow loss, his high-profile candidacy helped Democrats retake House seats and control of the chamber. The former Texas congressman confirmed to El Paso NBC affiliate KTSM that he's tossing his hat in the ring for 2020.

A day not to 'like' for Facebook, hit by outage, criminal probe
The social media giant acknowledged the report in a tweet, saying that it is already facing federal investigations . Facebook's data sharing deals are coming under hard scrutiny by American federal investigators.

Spotify lodges EU complaint against Apple over unfair music competition
Instead, the company is asking for fair set of rules that apple to everyone on the App Store, including Apple itself. Then there were other issues, where Apple would not allow Spotify to have an Apple Watch app or work with Siri.

S. Korea, US set for 'working group' session on N. Korea
Evans Revere, acting assistant secretary at the State Department's Bureau of East Asian and Pacific Affairs during the George W. I'll just put it this way - expands a lot of resources and efforts so we don't have to rely on commercial satellite imagery.

© 2015 ExpressNewsline. All Rights reserved.