inflation surprisingly weak
consumer prices fell for the first time in canada goose clearance sale nearly 1 1/2 canada goose uk shop years in August and underlying inflation pressures were muted, cheap canada goose uk which could Canada Goose Coats On Sale lessen the canada goose black friday sale urgency for the Federal Reserve to raise interest rates.
Shoppers carry their purchases along Broadway in New York City, May buy canada goose jacket 11, 2008. REUTERS/Joshua Lott
The Labor Department said on Wednesday its Consumer Price Index dropped 0.2 percent last month as a broad decline in energy prices offset increases in food and shelter costs.
It was the first decrease since April last year and followed a modest 0.1 percent gain in July. Economists had expected consumer prices would Canada Goose Jackets be flat in August. central bank might raise borrowing costs a bit Canada Goose Outlet quicker than it had been thinking a few months ago.
Concerns at the Fed that inflation was running too low have abated in recent months, but the CPI data suggested an acceleration of prices during the spring may have run its course.
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The CPI increased 1.7 percent in the canada goose 12 months through August, the smallest advance in five months, while a core index canadian goose jacket that strips out food and energy prices was up by the same amount, marking a slowdown canada goose store from canadagooseoutleta July 1.9 percent gain.
Month on month, the core index was unchanged for the first time since October 2010. The Fed targets 2 percent inflation and tracks an index that is running even lower than the Cheap Canada Goose coats CPI.
Many economists think the central bank could raise interest rates as soon as next June, while interest rate futures point to July for the first rate hike. It has kept benchmark overnight lending rates near zero since Canada Goose Parka December 2008.
WAGE GROWTH SLUGGISH The dollar rallied against a basket of currencies on perceptions of a faster pace of rate hikes, touching its highest level since July last year. government debt fell. Stocks on Wall Street canada goose uk black friday rose marginally.
While the economy appears to be on sustainable growth path, anemic wage growth is dampening price pressures. Average hourly earnings canada goose coats adjusted for inflation rose 0.4 percent in August. Even so, they have risen only by that same amount over the past year.
A second report showed Canada Goose sale homebuilder sentiment hit a near nine year high in September, with builders reporting a sharp pickup in buyer traffic since early summer. The uk canada goose outlet surge in confidence underscores the economy firming fundamentals. There were broad declines in energy prices, with the cost of gasoline falling by the Canada Goose online most since April Canada Goose Online last year.
Food prices rose 0.2 percent after advancing 0.4 percent in July as the effects of a drought in California lingered.
A second straight month of sharp declines in airline fares dampened the core uk canada goose CPI. Falling apparel and used car prices also weighed. Recreation canada goose factory sale prices recorded their largest drop since December 2009, while household furnishings declined and college tuition and fees saw their biggest fall in almost 27 years.