US inflation drops as shale reduces energy pressures

US inflation has dropped from two per cent to 1.5 per cent in March as measured by the Consumer Price Index (a drop to 1.6 per cent was expected). The drop with energy and food stripped out is much less dramatic, from two per cent to 1.9 per cent.

As the US has embraced fracking technology to access shale gas it has seen the pressure of energy costs on inflation dissipate. Energy costs inflation also fell within the Eurozone, from 3.9 per cent to 1.7 per cent.