Page 8 - Aruba Today 18 April 2015
P. 8
U.S. NEWS A7
Saturday 18 April 2015
US Financial Front:
Higher gas prices sparked modest inflation in March
because the U.S. econo- surge in consumer demand flation will reach the Fed’s
my has achieved stronger that would enable retailers target of 2 percent, a lev-
growth than much of Eu- to raise prices much. el deemed manageable
rope and Japan have. If gas prices hold steady, enough to encourage con-
At the same time, average the annual inflation rate sumer activity while keep-
hourly wages have risen at could begin to rise later this ing prices relatively stable
an annual rate of just 2 per- year. Economists are moni- and protecting against
cent, too low to cause a toring the possibility that in- deflation.q
A vehicle is refueled at a gas station in New Orleans. Rising gas
prices in March led to a slight increase in inflation, a sign that
some of the broader economic impact from cheaper oil is fad-
ing.
(AP Photo/Gerald Herbert)
JOSH BOAK Prices at the pump rose
AP Economics Writer 3.9 percent in March, con-
WASHINGTON (AP) — High- tributing, along with other
er-priced gasoline slightly factors, to a small dose of
boosted consumer prices inflation. Still, gas remains
in March, a sign that some relatively cheap, having
of the effects of cheaper fallen roughly 33 percent
oil are fading and that in- over the past year to an
flation may be edging up average price of $2.41 a
to healthier levels. gallon, according to AAA’s
The consumer price index Daily Fuel Gauge.
rose 0.2 percent last month, Primarily because of less
the Labor Department said expensive gas, consumer
Friday. Inflation moved at prices dipped 0.1 per-
that same pace in Febru- cent in the 12 months that
ary, ended in March, meaning
which ended three straight that more Americans have
monthly declines caused been able to conserve
largely by falling oil and their spending.
gas prices. Outside food and ener-
Inflation has been running gy, core prices also rose
below levels associated 0.2 percent in March. The
with a healthy economy, cost of clothes, housing,
evidence of subpar con- cars, and medical care
sumer demand and a increased, while food and
strengthening U.S. dollar. airfare decreased. Core
Economists see the bump prices have risen 1.8 per-
in gas prices as evidence cent in the past year.
that inflation will begin Several factors apart from
to rise closer to the Fed- gasoline suggest that infla-
eral Reserve’s target rate tion will likely remain sub-
of 2 percent. And it sug- dued. The stronger dollar
gests that consumer prices has slashed the cost of im-
aren’t at risk of sinking into ported electronics, cloth-
outright deflation, said Paul ing and other items. The
Ashworth, chief economist dollar has climbed in value
at Capital Economics. against the euro and yen
Saturday 18 April 2015
US Financial Front:
Higher gas prices sparked modest inflation in March
because the U.S. econo- surge in consumer demand flation will reach the Fed’s
my has achieved stronger that would enable retailers target of 2 percent, a lev-
growth than much of Eu- to raise prices much. el deemed manageable
rope and Japan have. If gas prices hold steady, enough to encourage con-
At the same time, average the annual inflation rate sumer activity while keep-
hourly wages have risen at could begin to rise later this ing prices relatively stable
an annual rate of just 2 per- year. Economists are moni- and protecting against
cent, too low to cause a toring the possibility that in- deflation.q
A vehicle is refueled at a gas station in New Orleans. Rising gas
prices in March led to a slight increase in inflation, a sign that
some of the broader economic impact from cheaper oil is fad-
ing.
(AP Photo/Gerald Herbert)
JOSH BOAK Prices at the pump rose
AP Economics Writer 3.9 percent in March, con-
WASHINGTON (AP) — High- tributing, along with other
er-priced gasoline slightly factors, to a small dose of
boosted consumer prices inflation. Still, gas remains
in March, a sign that some relatively cheap, having
of the effects of cheaper fallen roughly 33 percent
oil are fading and that in- over the past year to an
flation may be edging up average price of $2.41 a
to healthier levels. gallon, according to AAA’s
The consumer price index Daily Fuel Gauge.
rose 0.2 percent last month, Primarily because of less
the Labor Department said expensive gas, consumer
Friday. Inflation moved at prices dipped 0.1 per-
that same pace in Febru- cent in the 12 months that
ary, ended in March, meaning
which ended three straight that more Americans have
monthly declines caused been able to conserve
largely by falling oil and their spending.
gas prices. Outside food and ener-
Inflation has been running gy, core prices also rose
below levels associated 0.2 percent in March. The
with a healthy economy, cost of clothes, housing,
evidence of subpar con- cars, and medical care
sumer demand and a increased, while food and
strengthening U.S. dollar. airfare decreased. Core
Economists see the bump prices have risen 1.8 per-
in gas prices as evidence cent in the past year.
that inflation will begin Several factors apart from
to rise closer to the Fed- gasoline suggest that infla-
eral Reserve’s target rate tion will likely remain sub-
of 2 percent. And it sug- dued. The stronger dollar
gests that consumer prices has slashed the cost of im-
aren’t at risk of sinking into ported electronics, cloth-
outright deflation, said Paul ing and other items. The
Ashworth, chief economist dollar has climbed in value
at Capital Economics. against the euro and yen
