U.S. consumer prices jumped last month, suggesting Federal Reserve policy makers still have work to do to keep &to=http:// english.pravda.ru/region/2002/12/03/40296.html ' target=_blank>inflation from flaring. Costs excluding fuel and food showed the biggest increase in more than two years.
The consumer price index increased a larger-than-expected 0.6 percent in March after a 0.4 percent rise, the Labor Department said today in Washington. The gauge excluding energy and food rose 0.4 percent, twice the median forecast in a Bloomberg News survey and the biggest increase since August 2002.
Today's data, which followed a report yesterday showing tame core producer prices, suggest that airlines, hotels and clothing retailers are passing along higher costs of energy and other commodities. The acceleration of inflation pushed up yields on U.S. Treasury securities, tells Bloomberg.
According to the New York Times, today's report on consumer prices indicated that inflationary pressures may be growing faster than were indicated on Tuesday in a report on March &to=http:// english.pravda.ru/main/18/89/357/13842_petrol.html ' target=_blank>wholesale prices. That report showed producer prices rising 0.7 percent over all but only a slight 0.1 percent when energy and food costs are excluded.
Russian Foreign Minister Sergei Lavrov announced the termination of diplomatic relations with NATO at a time when US Secretary of Defense Lloyd Austin ended a meeting in Georgia with his counterpart