Friday, June 15, 2007

US May consumer prices up 0.7 pct, core prices tame

(Reuters) - The muted core price rise was likely to reassure financial markets that price gains remain tame, notwithstanding Federal Reserve officials' warning that they still see a danger from potential inflationary pressures. "Although core inflation seems likely to moderate gradually over time, the risks to this forecast remain to the upside," Fed Chairman Ben Bernanke told a monetary policy conference last week.




The department said core prices have risen 2.1 percent on a seasonally adjusted annual rate during the first five months this year, compared with a 2.6 percent rise for all of 2006.


Read more at Reuters.com Economic News

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