American inflation dwindles to zero
WASHINGTON–Consumer inflation in the United States reversed course in February to post the mildest reading in six months as energy and food costs moderated. The relief was expected to be short-lived, however.
The U.S. labour department reported yesterday that consumer prices were unchanged last month, although a 0.3 per cent gain had been expected.
Core inflation, which excludes energy and food, was also unchanged on the heels of a worrisome 0.3 per cent jump in January.
The February inflation reading, however, is likely be reversed before long, considering the big surge in energy prices in recent weeks.
Light, sweet crude for April delivery touched as much as $111 (U.S.) a barrel during trading Thursday, although the contract slipped 12 cents on the day yesterday to settle at $110.21 no fax payday advance.
In February, however, energy prices declined 0.5 per cent.
Food costs, which have been surging of late, also moderated a bit in February, rising by 0.4 per cent after a huge 0.7 per cent jump in January.
The flat reading for core inflation in February left underlying inflation rising 2.3 per cent over the 12 months, above the Federal Reserve’s comfort range of 1 to 2 per cent.
The unchanged reading for overall prices followed sizable gains of 0.4 per cent in January and December.
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