Inflation Fears Recede After U.S. Consumer Price Report

May 18, 2005
Fears of an inflationary spiral in the U.S. eased somewhat May 18 after a report showing "core" prices, excluding food and energy, were flat in April. Consumer prices rose 0.5% in April, but the core rate, excluding the volatile food and energy ...

Fears of an inflationary spiral in the U.S. eased somewhat May 18 after a report showing "core" prices, excluding food and energy, were flat in April. Consumer prices rose 0.5% in April, but the core rate, excluding the volatile food and energy components, was unchanged the Labor Department said.

The month-on-month rise in the consumer price index (CPI) was just over the 0.4% expected on Wall Street. It was mostly due to higher oil prices, the Labor Department said. The less volatile core rate was predicted to rise 0.2%.

Analysts said the report should allay concerns about inflation spiralling out of control, which could prompt more aggressive moves by the U.S. Federal Reserve. Merrill Lynch economist Sheryl King said the report "will go a long way towards reducing the concerns about building inflation pressures." Looking forward, King added, "The details of the report imply that some of the factors that were boosting core inflation in recent months are now pulling back." She said the data showed some firms were forced to pull back prices increases after consumers balked.

Copyright Agence France-Presse, 2005

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!