Shops in the Club Shop, Sam Wal-Mart stores Division in Pentonville, Arkansas 4 June 2009.
Credit: Reuters/Jessica rinaldibi Ann SaphirChicago | Thursday, April 28, 2011 3: 57 pm EDT
Chicago (Reuters)-Ben Bernanke optimistic view on inflation pressures under test.
The Federal Reserve and its Chairman on Wednesday reiterated its position that the surge in commodity prices such as oil and food--"temporary".
But a growing number of consumer products companies in the United States says it plans to raise selling prices for the boom in the cost of fuel and other raw materials.
Procter Gamble Co & and Kimberly Clark Corp. say they will charge more for diapers and toilet paper and cleaning supplies; balmolivi kolgit company is to raise the price of toothpaste.
This is bad news for consumers already rising gas pressure and food prices.
After ripping up the Federal Reserve policymakers raised the alarm on inflation, the Central Bank's decision Wednesday to allow its 600 billion dollars to buy bonds run to an end in June.
"Unfortunately for inflation hawks simply not strong enough, no scrolling large enough to create its own unique political direction," said Richard Hastings strategic consumers in "global strategies, energy prices," Hunter.
He predicted the end of this year, and will.
"I began to see Configure enough inflation to fed policy to change the end of this year".
Soberisi Bernanke argued that monetary policy of the Fed has accelerated progress towards the goals of price stability, the Central Bank and maximum employment.
Unemployment 8.8 per cent and less than high last year and the threat of deflation has receded.
But with high inflation, budget law gets more complex, Bernanke made a point Wednesday when asked about the benefits of buying more still bonds to reduce borrowing costs.
"It is not clear we get significant improvements in payroll without some additional inflation risks", his first regularly scheduled news conference after meeting of fed policy.
The inflation rate jumped as measured by personal consumption expenditure price index to 1.5 percent in the first quarter, government figures showed Thursday, a jump of 0.4 per cent in the previous quarter.
In the bond market, pricing inflation risk investors will run above the preferred measure of inflation the fed, with the difference between the 10-year Treasury securities Inflation-Protected and regular 10-year government debt, which means the annual inflation rate of 2.57% in 2021, follows recent peak 2.65 per cent.
In reference to investor concerns about inflation, is trading at $ 20 billion "tips Barclays ' iShares bond exchange traded fund, its highest level since November 2010.
If accelerated inflation, the US Central Bank might need to raise rates quickly, conversion tables in such countries as Brazil and struggled to stop the flow of capital they blame in part on the policy of near zero rate to the Fed. But fed officials don't expect that.
New prospects of the fed on Wednesday see primary index which excludes food and energy costs, rising to between 1.3 per cent and 1.6 per cent this year, still less than 2 per cent target for the Fed.
United States inflation subdued contrasts with prices in many parts of the world.
ECB rates earlier this month after euro-zone inflation rose by 2.7 per cent.
Fed officials expected forecast also showed inflation rising new now this year between 2.1% and 2.8%.
Bernanke said that increases in commodity prices represent "all" to increase, and expected to continue.
Bernanke said "many fed about gas prices, at least not without hindering growth, it is certainly not the right way". "Our gas prices will continue to rise to the recent pace."
Including food and energy, PCE price index rose at a rate of 3.8 percent faster since the third quarter of 2008.
"We have a different view of the Federal Reserve, as being temporary," Michael blessing Bosniac strategy in the United States, "Barclays Capital" in New York. "We believe it is the story of goods larger economic growth in emerging markets is likely to put upward structural pressure on commodity prices."
Coupled with the falling dollar, which raises the cost of imports, these trends could raise inflation for several years, said: "the upside is the threat of inflation in the market should pay more attention to."
However, most economists are stands with the fed, at least not yet.
Wages, manufacturing costs, rising slowly. And consumer prices would decline to concerns about employment, as they say.
"Companies have talked about the desire may pass on the costs we have been talking about will may pass on the costs for a period of time," Michael Verly, Chief Economist in the United States in Morgan Chase. "Generally they kind of hindered by weak demand."
(Reporting by Ann Saphir with reporting by Lucia motikani in Washington, and Richard LEONG in New York, and wall Jessica in Chicago, editing by nomiama Keizo)
No comments:
Post a Comment