Mixed signals in US
Saturday 11 February 1995
The financial markets' verdict was that there is more inflation in the pipeline.
The index of factory-gate prices rose by 0.3 per cent in January, and only 0.2 per cent after the volatile food and energy components were excluded. Although food prices fell in the month, there was a sharp rise in energy prices, reversing a fall in December.
Prices paid by firms for intermediate goods rose by an alarming 1 per cent, taking them to a level 5.2 per cent higher than a year earlier. The price of raw materials also jumped by 1 per cent.
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