Unexpected fall in core US consumer prices

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The Independent Online

Core US consumer prices fell for the first time in 27 years last month, supporting the Federal Reserve's contention it would keep interest rates low for an "extended period".

A spike in energy costs lifted the consumer price index 0.2 per cent, while the core measure, stripping out volatile food and energy prices, fell 0.1 per cent. The tame inflation data helped calm fears that the Fed's decision to raise the discount rate it charges on emergency loans to banks, announced late on Thursday, presaged a broader monetary tightening.