AMERICA’S recovery was boosted yesterday, with several data releases boding well for the world’s largest economy.
However, the Federal Reserve faces more criticism after core inflation rose at its highest rate for over a year.
Consumer price inflation for January came in higher than expected, at 0.4 per cent month-on-month. Core prices – excluding food and energy costs -- increased by 0.2 per cent – the largest gain since October 2009.
The index rose 0.1 per cent in December.
Meanwhile, the US leading indicators – which gauge the economic outlook – rose for the seventh straight month in January, increasing by 0.1 per cent on the previous month.
“The three month annualised rate remained high at 8.2 per cent, an encouraging sign that overall growth is indeed set to be stronger in 2011,” said Nicholas Tenev of Barclays Capital.
Signs of economic strengthening were also reflected in the Philadelphia Fed manufacturing index which jumped to 35.9 in February from 19.3 in January, well above expectations.
The employment part of the index rose to a 37 year high of 23.6, from a previous level of 17.6.