Lettuce link to US inflation rate
Saturday 13 May 1995
Flashing the second inflation danger signal this week, yesterday's figures meant a further retreat of lingering hopes that the Federal Reserve might cut interest rates later this month, and helped send the dollar soaring.
Floods in California in March affected food prices last month. Apart from lettuces, other fresh vegetables cost 13.6 per cent more. Food prices overall increased 0.7 per cent.
More worrying was a 0.4 per cent increase in ''core'' prices excluding food and energy. There were sizeable increases across a wide range of goods and services including transport, housing, medical care and entertainment.
The headline rate of inflation has now reached 3.1 per cent, compared with 2.4 per cent a year ago. Kevin Flanagan, an economist at Dean Witter Reynolds in New York, said signs of inflation pressure are being passed on to consumers.
The shift in Wall Street views on interest rates was one factor contributing to the dollar's strength yesterday. By noon in New York, the currency was trading at DM1.4450 and Yen86.73, down from its earlier highs but well above its opening levels of DM1.4130 and Yen 85.35.
Keith Edmonds, chief analyst at IBJ International, said: ''Apart from the signs that the American economy is not slowing that rapidly and inflation could be a worry, the dollar is being supported by signs of progress on the Federal budget deficit.''
Other analysts cited the prospect of US trade sanctions against Japan as a reason for dollar strength. Gerard Lyons of DKB International said: ''Some people see it as a switch of tactics, from talking down the dollar to trade sanctions.''
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 Doctors remove 80 teeth from boy's jaw
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing
Syrian teenager Usaid Barho reveals how he escaped from Isis using a suicide vest
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...