Reuters - Video

Edition: US | UK | IN | CN | JP

video Finance Videos

Wall Street gets Fed reality check
Wall Street gets Fed reality check - 01:51
Reuters Today: Spanish yields seen rising at auction
Reuters Today: Spanish yields seen rising at auction - 06:21
Surprise services boost points to UK recovery
Surprise services boost points to UK recovery - 02:54
Breakingviews: Do as I say, not as I do – German wages
Breakingviews: Do as I say, not as I do – German wages - 05:04
Market Pulse: Spain under fire as investors shun bond sale
Market Pulse: Spain under fire as investors shun bond sale - 03:28
Myanmar's Kyat begins managed float
Myanmar's Kyat begins managed float - 01:59
ASEAN: territorial code of conduct draft by year-end
ASEAN: territorial code of conduct draft by year-end - 01:48
U.S. Morning Call: Stock futures down, JPMorgan to be fined
U.S. Morning Call: Stock futures down, JPMorgan to be fined - 02:08
EMEA Day Ahead:: Thursday
EMEA Day Ahead:: Thursday - 03:13
3XSQ: Customer funds in question; royal return
3XSQ: Customer funds in question; royal return - 05:44
Still cashing in? Hirst retrospective
Still cashing in? Hirst retrospective - 02:32
World's biggest car delivery center
World's biggest car delivery center - 02:41

Daily Digit: Prices jump 1.7 percent

Tuesday, June 18, 2013 - 01:01

June 18 - U.S. consumer prices, excluding food and energy, rose 1.7 percent in the 12-months through May, which should ease Federal Reserve fears of a slowing economy. Conway G. Gittens reports.

▲ Hide Transcript

▶ View Transcript

The Daily Digit is 1.7 percent. U.S. consumer prices, excluding food and energy, are up 1.7 percent for the 12 months including May. The biggest gains were all housing related and a big jump in airline fares was also a factor. The so-called core rate favored by the Federal Reserve had been stagnant for some time, causing worry the economy was actually shifting into lower gear. At 1.7 percent, the 12-month inflation rate is still below the Fed's 2 percent target, but at least suggests the economy is heading in the direction the Fed wants it to. Higher inflation and a stronger economy could make the Fed more comfortable in removing some of the extra stimulus put in place to help the economy stabilize after the financial crisis and subsequent recession. The Fed is not expected to start scaling back its $85 billion a month bond buying program until the fall, but may provide some clues after a two-day meeting concludes on Wednesday.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Close

Daily Digit: Prices jump 1.7 percent

Tuesday, June 18, 2013 - 01:01