June 17, 2009

CAN'T STIMULATE ENOUGH TO COUNTER GLOBAL DEFLATION:

http://www.latimes.com/business/la-fi-economy18-2009jun18,0,2060316.story?track=rss>
Consumer prices rise less than expected in May (Associated Press, June 17, 2009)

Consumer prices rose less than expected in May, fresh evidence that the recession is keeping inflation in check.

The Labor Department reported Wednesday that the consumer price index rose a seasonally adjusted 0.1 percent last month, below analysts' expectations of a 0.3 percent rise.

Excluding volatile food and energy costs, core prices also increased 0.1 percent, matching expectations.

Low inflation enables the Federal Reserve to keep a key short-term interest rate near zero, where it has been for months.


Posted by Orrin Judd at June 17, 2009 9:30 AM
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