The consumer price index increased 0.8 per cent from the prior month, reflecting gains in nearly every major category and a sign burgeoning demand is giving companies latitude to pass on higher costs
US gold futures fell 0.2 per cent to $1,834.20 per ounce.
The index rose close to 500 points on opening after the US Federal Reserve (Fed) pledged to shrug off inflation worries for a while and keep the monetary policy loose through 2023
The Fed made few changes to its policy statement at its last meeting in January, and did not issue new economic forecasts
Monetary base issued by the Fed had jumped from less than $1 trn before the GFC to more than $3 trn by early 2020 and then to about $5 trn by end of the year. But inflation has hardly gone up. Why?
The number of Americans filing new unemployment benefits claims fell to a seven-month low last week, but the pace of decline has slowed and further improvement could be limited by a raging pandemic
Fed's new approach would allow for prices to overshoot target
On Thursday, Fed Chair Jerome Powell begins what may be the tougher task: convincing the public that the central bank can and will deliver in the wake of a pandemic
The fixed-income securities of the three countries appear the most vulnerable to any surge in consumer prices, according to a Bloomberg study of 10 emerging markets
As manufacturing in China recovers, so will the demand for raw materials
While households benefit from contained inflation and will find comfort in lower fuel costs, the Fed tends to be wary of subdued longer-term price expectations taking hold
Sensex has gained in six of past seven weeks
Inflation is also likely to get a boost from a tightening labor market
Janet Yellen believes that as the labor market tightens, inflation will rise back toward 2%, Evans still remains unsure
Labour-force participation remains depressed relative to its pre-crisis norm
Some of the recent pullback in inflation also stemmed from lower energy price
Surge in inflation raises the possibility of an interest rate increase from Fed Reserve this month