*NEWS*GASOLINE PUSHES U.S. INFLATION UP

  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • 161213_banner_futorag_902x177px
  • 2toner1-2
  • 536716a_green_sweep_web_banner_902x17712
  • 4toner4
  • Print
  • banner-01-26-17b
  • ink-direct-banner-902-x-177-v-1-2-big-banner-03-23-2017
  • futor_902x177v7-tonernew
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
Share

*NEWS*GASOLINE PUSHES U.S. INFLATION UP

 user 2006-04-18 at 10:10:00 am Views: 55
  • #15277

    Big jump in gasoline prices pushes up inflation at wholesale level
    WASHINGTON
    4/06 – A big jump in gasoline prices pushed inflation at the wholesale
    level up in March at the fastest pace in three months, as oil prices
    above $70 a barrel sent consumers a high-octane warning of fuel costs
    ahead.

    The
    Labor Department reported that wholesale prices rose 0.5% in March
    following a 1.4% February decline, which had been the largest drop in
    nearly three years.The March increase was slightly worse than the 0.4%
    rise Wall Street had been expecting and driven by a 9.1% surge in
    gasoline prices, the biggest one-month gain since November
    2004.Consumers can expect even worse numbers in coming months, given
    that crude oil prices this week have climbed to records above $70 a
    barrel. That reflects worries about supply disruptions in Nigeria and
    increasing tensions between the West and Iran over Tehran’s nuclear
    program.In other economic news, the Commerce Department reported
    construction of new homes dropped 7.8% in March. It was the fourth
    decline in the past six months and provided further evidence that the
    nation’s five-year housing boom is quieting.The decline pushed
    construction of new homes down to a seasonally adjusted annual rate of
    1.960 million units, the lowest in a year. Housing construction surged
    16% in January, reflecting warm weather, but fell 7.8% in February.The
    0.5% overall increase in the producer price index, which measures
    inflation pressures before they reach the consumer, was the biggest
    one-month gain since a 0.8% increase in December, a jump also driven by
    surging energy prices.However, outside the volatile energy and food
    sectors, core inflation rose just 0.1% in March, and increased a
    moderate 1.7% over the past 12 months.The Federal Reserve has been
    pushing interest rates up gradually since June 2004 to keep the energy
    spike from causing widespread inflation problems.Economists are looking
    for the central bank to boost a key interest rate for a 16th time at
    its May meeting and there is a growing view that the Fed will keep
    raising rates into the summer, as inflation worries intensify.
    For
    March, overall energy prices rose 1.8%, driven entirely by gasoline
    prices. The cost of natural gas for home use fell 0.5%, while home
    heating oil prices dropped 3.6% and residential electric power prices
    0.7%, the biggest decline in nearly two years. Those declines reflected
    a warmer-than-normal winter which kept fuel supplies at adequate
    levels.Food costs rose 0.5% after having fallen 2.7% in February. A
    29.2% surge in the price of eggs helped drive the the biggest one-month
    increase since last September. The price of fish rose by 11.5%, the
    biggest jump in nearly two decades.Outside of energy and food, the 0.1%
    rise in core inflation reflected a 0.4% increase in the price of new
    cars.The big decline in housing activity reflected weakness in
    single-family construction, which dropped 12% to a seasonally adjusted
    annual rate of 1.591 million units. Construction of apartments and
    other multi-family housing rose 15.7% to an annual rate of 369,000
    units.Construction was down in all parts of the country, led by a 15.5%
    drop in the West and an 8.2% decline in the Midwest. Construction
    activity fell 4.8% in the South and 0.5% in the Northeast.Permits for
    future construction fell 5.5% in March to an annual rate of 2.059
    million units following a 1.7% decline in February.