Start your Binary Trading income NOW!!!

Sponsored by Nuffnang.com

Tuesday, May 13, 2008

U.S. Import Prices Increase, As Fuel and Metals Increased

Source: Daily FX

The U.S. import price index for April increased 1.8 percent, led by fuel and metals costs, which was greater than the expected 1.6 percent. The gain followed an upward revised 2.9 percent from the month prior, underlining inflation concerns. Fuels and lubricants saw a 4.3% increase following and 8.8% in March, as record oils prices continue to get passed through. Looking at all the components, we see that consumer goods ex autos prices increased 2%-its lowest in four months. The rising import prices may signal that tomorrow’s CPI may be higher than expected, with the core reading possible falling in line with expectations. The Fed is expected to pause their easing policy, but an increase in inflation will assuredly give them a greater reason to leave rates unchanged going forward. As consumers continued to get squeezed by rising prices and declining home values the growth outlook for the economy may decline.

No comments: