By CountingPips.com
U.S. Consumer Prices increased slightly more than unexpected in January as energy and food price rises helped push the index higher, according to a report released today by the U.S. Department of Labor. The Consumer Price Index, a key measurement of inflation, increased by 0.4 percent in January following an increase of 0.4 percent in
Today’s data just surpassed economic forecasts that were expecting a 0.3 percent increase. Consumer prices have now shown higher levels every month since July 2010.
The annual rate of consumer prices rose by 1.6 percent when compared to January 2010 following an increase in December by 1.5 percent.
Rising energy prices were a significant contributor in the increased inflation as the report showed that the energy index rose by 2.1 percent and gasoline prices increased by 3.5 percent for the month. Food prices rose by 0.5 percent in January after a 0.1 percent increase in December.
The core inflation reading, excluding volatile food and energy prices, rose by 0.2 percent for the month and just above the market forecasts expecting a 0.1 percent gain. The annual rate of core inflation increased by 1.0 percent for January following an increase of 0.8 percent in December.
Elsewhere in US economic releases, the Philadelphia Federal Reserve manufacturing survey rose by much more than expected with a 35.9 score in February. This follows a 19.3 reading in January and surpassed the 21.0 score economic forecasts were expecting.
The US leading indicators index edged up by 0.1 percent in January following the 0.8 percent score in December. The data was just below forecasts looking for 0.2 percent.
US initial jobless claims rose back above 400,000 last week with a total of 410,000 new weekly jobless claims. This was a rise of 25,000 claims from the week prior which totaled 385,000. Continuing claims for jobless benefits were virtually unchanged from the previous week.
US Dollar on defensive in Forex Trading
The U.S. dollar has been lower cross the board in forex trading today against the other major currencies in the early going of the US trading session. The dollar has been losing ground versus the euro, Canadian dollar, British pound sterling, New Zealand dollar, Australian dollar, Swiss franc and the Japanese yen, according to currency data by Oanda.
The US stock markets, meanwhile, have had been close to unchanged to start the day with the Dow Jones falling by over 3 points, the Nasdaq decreasing by under one point and the S&P 500 showing a 1 decline point gain.
Oil has traded about unchanged at $85.06 per barrel while gold futures have risen by $5.80 to $1.380.50 per ounce.