Economic News

WASHINGTON (Dow Jones) -- Energy prices pushed the U.S. consumer price index up 0.6% on a seasonally adjusted basis in April, the Labor Department said Wednesday. Higher shelter costs boosted the core CPI, which excludes food and energy prices, to a 0.3% gain. The increase in the CPI and the core rate were both slightly higher than forecast. Economists expected a 0.5% gain in the CPI, accord ...

Treasury prices were sharply lower early Wednesday, fattening yields, after inflation fears were fueled by stronger-than-expected headline and core numbers in last month's consumer price report. The fixed-income market abhors inflation because it eats into the value of bonds and keeps pressure on the Federal Reserve to continue lifting interest rates. The benchmark 10-year Treasury note fell ...

U.S. stocks fell sharply Wednesday after a stronger-than-expected rise in consumer prices in April reduced the likelihood that the Federal Reserve may pause in its cycle of interest-rate hikes at its June meeting. Hewlett-Packard, however, was a bright spot on the Dow Jones Industrial Average, after the computer and printer maker posted strong quarterly earnings. The Dow industrials (DJI) was  ...

U.S. stocks fell in opening trade Wednesday after a stronger-than-expected rise in consumer prices in April reduced the likelihood that the Federal Reserve may pause in its cycle of interest-rate hikes at its June meeting. Hewlett-Packard, however, was a bright spot on the Dow Jones Industrial Average, after the computer and printer maker posted strong quarterly earnings. The Dow industrials ( ...

By Matt Falloon LONDON (Reuters) - Stocks fell on Wednesday after a strong inflation reading in the United States rattled nervous investors who dread higher borrowing costs in the world's biggest economy. The FTSE 100 share index earlier reversed opening gains after minutes from the Bank of England's last interest rate meeting showed a split of votes, which analysts said increased the possibili ...

US consumer prices rose faster than expected during April, sparking speculation that US interest rates may have to rise further to cap inflation. Consumer prices gained by 0.6% last month, the Labor Department said. Core inflation, which does not include food or energy costs, increased by 0.3%. Rising prices are often a trigger for interest rates to go up. Last week the US central bank, the Federal Reserve, raised interest rates by a quarter of percentage point to 5%. 'Hawkish position' Ma ...

LONDON (Dow Jones) -- Markets were dealt a surprise on Wednesday after minutes from the last Bank of England interest-rate setting meeting showed a surprise call by one of its members for an interest rate hike. The rate hike call, by David Walton, came amid another call for an interest- rate cut by outgoing member Stephen Nickell, and six other votes to keep rates at 4.5%. Though rate hike e ...

SAN FRANCISCO (Dow Jones) -- These days, even some of the bad news out of Japan contains glimmers of good. From across the Pacific, recent headlines might appear at first glance to resemble the kind that raised red flags around the world over the past decade, when the possibility of a Japanese financial crisis ominously loomed in the mind of anyone who had a stake in the country. Since last  ...

| Eurozone inflation rise spells ECB rate hikeBy Reuters, 17 May 2006, 10:58Published: May 17 2006 13:31 | Last updated: May 17 2006 13:31Energy prices boosted euro zone inflation as expected in April, data showed on Wednesday, but core inflation accelerated too, strengthening the case for a European Central Bank interest rate rise in June. // The European Union’s statistics agency said fuels for transport, gas and heating oil boosted inflation in the 12 countries using the euro currency to ...

The Bank of England was split three ways over its May decision to keep interest rates on hold at 4.5%, its minutes reveal. Its Monetary Policy Committee members voted six in favour of no change earlier this month, while one member wanted a rise and another a fall. David Walton called for a quarter-point increase, while Stephen Nickell voted for a cut by the same amount. Interest rates have now been on hold for nine months in succession. 'Balanced views' Howard Archer, chief European economi ...