Skip to: Content
Skip to: Site Navigation
Skip to: Search

July 25, 2008 5:23:05 PM CDT

Learn about Newser Points »

« Back to the grid | Next story »

Inflation Cools, Heats Wall Street

Posted May 15, 07 1:48 PM CDT in Business 

(Newser) – The core consumer price index stayed steady last month, rising just 0.2% and cooling worries about inflation. The overall CPI, which responds to fluctuating food and energy costs, climbed 0.4%, still well within the comfort zone. That's good news for the Fed, which held interest rates steady last week in hopes of targeting inflation.

The better-than-expected figures led a rally to a record high on Wall Street, MarketWatch reports, even after Home Depot and Wal-Mart released poor earnings data. But gas—which rose yesterday to a record of $3.09 a gallon and was up 4.7% in April alone—looks to be the spoiler.

Source Bloomberg

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Consumer Prices Surge Most Since '91

    Jul 16, 08 9:35 AM CDT
    Consumer Prices Surge Most Since '91 Consumer prices rose a staggering 1.1% in June, Bloomberg reports. The figure far surpassed analyst estimates, and brings the year-over-year figure to 5%–the biggest surge since 1991. Core inflation, which excludes food and energy, rose a more-than-expected 0.3%. “Inflation has galloped,” one economist said. “It puts the Fed in a really tricky position. I don't see how they can change rates this year.” More »

  • Rate-Cut News Sweeps Away Rally

    Apr 30, 08 3:38 PM CDT
    Rate-Cut News Sweeps Away Rally News of today's Fed interest-rate cut swept away a market rally, and stocks ended down. Language in the Fed statement indicating that further trims were unlikely spooked investors, the Wall Street Journal reports, though that news was expected. The Dow ended down 11.81 to 12,820.13; the Nasdaq was off 13.30 to 2,412.80; and the S&P down 5.35 to 1,385.59. More »

  • Consumer Prices Flat in Feb.

    Mar 14, 08 8:41 AM CDT
    Consumer Prices Flat in Feb. Consumer prices were flat for February, pleasantly surprising economists who expected a 0.2% increase, reports the Wall Street Journal. This morning’s consumer price index eases concerns that inflation is accelerating as the economy slows, and it gives the Federal Reserve more reason to float a large interest rate cut next week. A drop in energy prices was credited with the inflation relief, likely to be short-lived as this month's record oil and gas prices are factored into the next reports. More »

  • Inflation Spikes, Cut in Jeopardy

    Feb 20, 08 9:04 AM CST
    Inflation Spikes, Cut in Jeopardy Core inflation bounded ahead of expectations in January, which is bad news for anyone betting on a big rate cut from the Fed–and for the Fed itself. The consumer price index rose 0.4%, with core CPI rising 0.3%, putting the year-over-year figures at 4.3% and 2.5% respectively, well above the Fed’s traditional 1.5%-2% comfort zone, the Wall Street Journal reports. More »

  • Consumer Prices Jump Most in 2 Years

    Dec 14, 07 9:36 AM CST
    Consumer Prices Jump Most in 2 Years November’s consumer price index spiked 0.8%—the biggest rise since September 2005—as soaring energy costs pushed up prices on an array of  goods and services. The increase, higher than the 0.6% anticipated, reignites inflation worries, causing experts to predict that further Fed rate cuts are unlikely, Bloomberg reports. More »

A motorist, right, fuels his car at a gas station in Braintree, Mass., Monday, May 14, 2007. Gas prices rose two cents over the last week in Massachusetts for an average of $2.95 for a gallon of self...   (Associated Press)
An employee of Jeffries Execution Services works on a screen on the floor of the New York Stock Exchange, Friday, May 11, 2007. Wall Street resumed its advance Friday as investors interpreted a government...   (Associated Press)
A construction roofer works on the frame of a roof at a new housing development on in this, April 6, 2007 file photo in Phoenix. The growth in worker productivity slowed in the first three months of this...   (Associated Press)
A gas station on 72nd Street off Interstate 80 displays the latest gas prices, in Omaha, Neb., Monday, May 14, 2007. The average price for a gallon of regular unleaded gasoline in Nebraska reached an...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (1 of 1)

Tags

stock market  • Federal Reserve  • Wall Street  • inflation  • core inflation  • Consumer Price Index


Loading...

Loading...

Today's Most Popular


Other Home Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »