Friday, October 14, 2005
Economic Report: U.S. inflation surges 1.2%, a 25-year high - Bond Market - Economy
The report should keep the Federal Reserve on track for more interest rates hikes at coming meetings. While the core CPI was contained, that was largely due to several special factors unlikely to be repeated in coming months, such as declines in hotel rates, rents and airfares.
'These downside surprises are looking increasingly fishy,' said Stephen Stanley, chief economist for RBS Greenwich Capital.
'Anecdotal evidence and common sense suggests that core inflation has not been anywhere near this tame,' said Mark Vitner, an economist for Wachovia.
Now it seems that financial numbers are just as suspect as all other info issued by Washington.
'These downside surprises are looking increasingly fishy,' said Stephen Stanley, chief economist for RBS Greenwich Capital.
'Anecdotal evidence and common sense suggests that core inflation has not been anywhere near this tame,' said Mark Vitner, an economist for Wachovia.
Now it seems that financial numbers are just as suspect as all other info issued by Washington.
- Frank
