Consumer Prices Show No Signs of Inflation Dangers

dpa) - A shopping cart with groceries and household supplies stands in a supermarket in Duesseldorf, Germany, 14 January 2003. Despite the expected 'Teuro' effect ('teuer' means 'expensive'), prices only increased by 1.3 percent in Germany. According to the Federal Statistical Office, inflation rates in the first year of the …

Consumer prices rose in line with expectations, according to data released Tuesday by the U.S. Department of Labor.

The consumer price index rose 0.2 percent from a month earlier, hitting the consensus forecast. The rise in prices was lower than the prior month, when the CPI rose 0.5 percent.

On an year-over-year level, prices rose 2.2 percent. That was also the consensus forecast.

Core inflation, which subtracts changes in volatile food and energy prices, was 0.2 percent on a month-over-month basis and 1.9 percent compared with a year ago.

The move was seen as a positive for stocks, pushing a 100-point gain in the opening price of the Dow Jones Industrial Average as implied by the futures market. That was the opposite of what happened last month, when a jump in prices prompted investors to sell stocks.


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