Consumer prices increased by just 0.1 % in February, which is what Fed wanted to achieve by raising interest rates. This means that Fed will stop raising interest rates, which also means that no more increase in interest rates will make it affordable for businesses to borrow money, which also means the home sales which are going down due to concerns of rising interest rates as one of the reasons, may also improve. Over all with Inflation under control, economy is in better shape. But this core inflation number does not consider the energy and food costs. Energy, for instance gas for our cars has just tripled in last few years. Even though the inflation is under control from measurement perspective real consumers of products are paying a much higher price for day-to-day use goods.
Posted under World News
This post was written by techhair on July 8, 2008
