Macroeconomic Event

U.S. inflation Rises by 0.1%, In Line with Expectations

Inflation in the world's largest economy climbed in the third month of the year by 0.1%, in line with what analysts expected. Core inflation remained unchanged and the CPI annual rate rose two tenths to 2.3%, according to the Government release. Within the energy prices, increasing electricity (+2.1%) was offset by lower rates of gasoline (-0.8%) and natural gas (-0.7%). Analysts expected an increase of between 0.1% and 0.3% or even predicted an unchanged rate, as was the case in February.

The increase in the Consumer Price Index is mainly due to higher prices of fruits and vegetables, which rose 4.6% in March compared with February, which represent 60% of the rise in the overall index. Both core inflation, which excludes prices of food and energy, such as energy prices, were unchanged in March, after rising tenth in February and March compared to last year has increased 1.1%. The analyst estimates regarding suyacente rising inflation ranged between 0 and 0.1%, the same increase in February.

The moderate pace of inflation, even when the U.S. returned to growth in mid-2009 after four quarters of contraction, validates monetary policy that keeps the Federal Reserve. Since December 2002, the Fed has kept the benchmark interest rate by less than 0.25%, and the recent meeting of the Open Market Committee, which conducts monetary policy, confirmed that this approach will continue in an extensive period.

Retail Sales, Much Better than Expected

It has also been noticed by retail sales data for March that month was an improvement of 1.6%, up from 1% rise expected by analysts. In annual terms the figure has grown by 7.6%. Excluding the increased in car sales in March it was 0.6% monthly and 6.4% yoy. If we also exclude gas stations, improvement was 0.7%, above the 0.5% increase expected by the market.

Up 0.1% in October In Line with Expectations

This result was influenced by the housing category, which posted its biggest gain in more than four years. Consumer prices in the U.S. rose in October because the housing category posted its biggest gain in more than four years while the price of gasoline fell.

The Consumer Price Index (CPI) rose 0.1% in October, in line with analysts' forecasts, (Labor Department data showed). The data still point to only modest inflationary pressures are unlikely to derail the plan of the U.S. Federal Reserve to keep interest rates low for an extended period. The prices of housing maintenance, including income, rose 0.3% in October, its biggest gain since 2008, and that item was responsible for more than half of the increase in the CPI. That could be a sign of hope for the economy because homeowners felt they have more room to raise the rent. The rent for primary residences rose by 0.4%.

Gasoline

Gasoline prices fell 0.6% in October after jumping 7% of the previous month. It was the first drop in gasoline prices since June. Higher prices at service stations have forced many U.S. consumers to ...