US Consumer prices up in April

US consumer prices have risen less than forecast for April, which has allowed the Federal Reserve the confidence to now begin to set their focus upon restructuring the economy.

The labour department report, released yesterday, revealed that the 0.2 percent rise in the Consumer Price Index was less than the gain that analysts had been expecting, and following the report, Bonds increased.

The Federal Reserve has cut its benchmark interest rate by 3.25 percentage points to 2 percent since September in order to deal with the double threat of the credit crunch and the housing market.

Prices rose by as much as 3.9 percent in the 12 months ended in April with fuel costs, the main protagonists, with a 4.4 percent increase from last year.

Food prices, which relate to 20 percent of the CPI, increased by 0.9 percent since the previous high, back in 1990.

Energy costs this month have continued to soar and a barrel of oil has again set another record trading at $126.98, and at the pumps, it is a similar story with prices at $3.76 a gallon.

Although Janet Yellen of the central bank believes that inflation will slow, as the labour market weakens, which will help to steady commodity prices.

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