Get a demo Do I subscribe? News sign-up
Download PDF

Inflation Threatens Interest Rate Cuts

News, 22 February 2001

The spectre of inflation loomed large this week as it emerged that the US Consumer Price Index had risen 0.6%.

This figure reflects spiralling energy prices (up 3.9%), but even the core price, which excludes food and energy, jumped by 0.3% – a greater margin than expected.

Inflationary worries may now deter the Federal Reserve from lowering interest rates next month, which may in turn reduce investor confidence.

News source: BBC Online Business News (UK)