This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8152113.stm
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Fuel costs push US prices higher | Fuel costs push US prices higher |
| (20 minutes later) | |
| US consumer prices rose at their fastest pace in June for nearly a year, prompted by higher petrol prices, the Commerce Department has said. | US consumer prices rose at their fastest pace in June for nearly a year, prompted by higher petrol prices, the Commerce Department has said. |
| The Consumer Price Index rose 0.7% last month, after May's rise of 0.1%. The figure was slightly above the 0.6% increase analysts had expected. | The Consumer Price Index rose 0.7% last month, after May's rise of 0.1%. The figure was slightly above the 0.6% increase analysts had expected. |
| But the rise is viewed as a blip, as petrol prices rose 17.5% last month. | But the rise is viewed as a blip, as petrol prices rose 17.5% last month. |
| However, the index was down 1.4% from the same period a year earlier when energy costs were higher. | However, the index was down 1.4% from the same period a year earlier when energy costs were higher. |
| This is the largest year-on-year decline in nearly six decades. | This is the largest year-on-year decline in nearly six decades. |
| Oil volatility | Oil volatility |
| Energy prices have fallen considerably since last year, but have shown significant volatility in recent weeks. | Energy prices have fallen considerably since last year, but have shown significant volatility in recent weeks. |
| Inflation has neither gone away nor become a problem Joel Naroff, Naroff Economic Advisors | Inflation has neither gone away nor become a problem Joel Naroff, Naroff Economic Advisors |
| In July last year, oil prices reached a record high of above $147 a barrel, but by the end of 2008 prices were below $40 a barrel. In recent weeks oil has been trading at about $60. | In July last year, oil prices reached a record high of above $147 a barrel, but by the end of 2008 prices were below $40 a barrel. In recent weeks oil has been trading at about $60. |
| Core consumer inflation - which excludes volatile energy and food prices - rose 0.2% in June - just above forecasts of 0.1%. Year-on-year the rise was 1.7%. | Core consumer inflation - which excludes volatile energy and food prices - rose 0.2% in June - just above forecasts of 0.1%. Year-on-year the rise was 1.7%. |
| "Inflation has neither gone away nor become a problem," said Joel Naroff of Naroff Economic Advisors. | "Inflation has neither gone away nor become a problem," said Joel Naroff of Naroff Economic Advisors. |
| "Investors should like this report as it basically says the Fed is free to do what it has to in order to get the economy going faster." | "Investors should like this report as it basically says the Fed is free to do what it has to in order to get the economy going faster." |
| Production falls slowing | |
| Separate figures released on Wednesday showed that while US industrial production continued to fall in June, the rate of decline slowed. | Separate figures released on Wednesday showed that while US industrial production continued to fall in June, the rate of decline slowed. |
| Production fell 0.4% last month, following May's revised 1.2% decline, said the Federal Reserve. | Production fell 0.4% last month, following May's revised 1.2% decline, said the Federal Reserve. |
| On a sector-by-sector basis, manufacturing output fell 0.6% last month, while mining production dropped 0.5%. By contrast, the utilities industry saw output rise 0.8%, helped by the higher energy prices. | |
| The most recent official figures showed that the US economy contracted at an annualised rate of 5.5% in the first three months of 2009, less than the previous estimate of a 5.7% decline. | |
| This was also an improvement on the 6.3% contraction seen in the last quarter of 2008. | |
| Both the Federal Reserve and US government have said that the economic picture is now starting to improve, albeit slowly. |