HiFX: Foreign Exchange Specialists

• Headlines

May 14, 2008

Excluding food and energy consumer prices rose less than forecasted in April, but still remain above the Federal Reserves annualised target of 2.0 percent.  Though the report was significantly better than markets had expected it does not rule out the FOMC raising interest rates in the near future.  The latest inflation reading does mirror statements made by various FOMC members that inflationary pressures are likely to ease and remain elevated only “temporarily.”  The FOMC may now continue to assess additional data prior to making any changes at the upcoming interest rate decision.