USA: fall in pricesMonday, May 24, 2010 0:18
According to the official data, US prices decreased for the first time since last year. Against all expectations, consumer price index inflation fell 0.1%, although analysts expected a rise.
That means that the US Federal Reserve is not going to raise US interest rates and tighten monetary policy, as the inflation is a little low.
Petrol price also saw a slight decline by 2.4%, while food costs increased by 0.2 %.
Unfortunately, unemployment rate is still high. Compared to the figures in March (9.7%), it rose in April to 9.9%. The number of people out of work was more than 15 million.
According to the sources from the Federal Reserve, they are not going to raise interest rates until next year.