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US core consumer prices mark 1st drop in 27 years

Posted by Junichi Kawagoe on 21.2010 News Out of English Newspaper   0 comments   0 trackback
Core consumer prices in the United States fell for the first time in 27 years in January.

The core consumer price index does not include volatile food and energy prices.

The US Labor Department said on Friday that the consumer price index for last month rose by 0.2 percent from the previous month. But it said the core consumer price index showed a 0.1 percent decline from a month earlier due mainly to a drop in the prices of new cars and airfares.

This was the first monthly drop since December 1982. The very slight drop suggests that as the US economy recovers, consumer prices remain stable.

Meanwhile on Friday, the Federal Reserve Board raised its official discount rate by 0.25 percent to 0.75 percent. The move is a step forward in the Fed's so-called exit strategy of scaling back the emergency measures taken in response to the financial crisis.

Some economists expect the Fed to maintain its easy-money policy for the time being as the latest data show US consumer prices are stable.

2010/02/20 09:12(JST)
(JST: UTC+9hrs.)

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