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April 20, 2005

Gurk!

Not good:

FT.com / World / International economy - US inflation rising faster than expected: By Christopher Swann and Andrew Balls in Washington: US inflation rose at twice the pace economists had been expecting in March, further reducing the chances that there will be any respite this year from rising interest rates. The headline consumer price index climbed 0.6 per cent - boosted by a 4 per cent rise in energy prices. Over the past year consumer prices have increased 3.1 per cent. But it was the rise in underlying inflation that most alarmed analysts. Core inflation - excluding food and energy - climbed by 0.4 per cent, double the increase economists had been forecasting. The data comes a week after weak retail sales and consumer confidence figures, raising the prospect that the Federal Reserve may be sandwiched between rising inflation and weaker consumption...

Posted by DeLong at April 20, 2005 09:11 PM