The Consumer Price Index (CPI) for all urban consumers increased 0.2 percent in February on a seasonally adjusted basis, in line with market consensus, the U.S. Labor Department reported Tuesday. Hourly pay rose a modest 2.6 percent in February from a year earlier, down from a 2.8 percent gain the previous month. After a sharp fall in December, analysts see a strong rebound in January's manufacturing orders with the yearly gauge surging by 5.3% y/y.
China's Consumer Price Index (CPI) saw an unexpected jump in February, rebounding to 2.9% year-on-year from 1.5% in January, its highest rate since November 2013, according to data released by the National Bureau of Statistics last week.
The CPI inflation for rural areas was 4.37% in February while for urban areas it was 4.52%.
Fuel and light inflation stood at 6.8%, compared with 7.58% in January, while housing inflation stood at 8.28%, from 8.33% the previous month. Apparel prices rose 1.5% on the month and transportation services increased 1%.
This is unedited, unformatted feed from the Press Trust of India wire.
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"This easing appears to have come largely on the back of a slowdown in the food price inflation on account of one-off seasonal factors", Richa Gupta, senior economist and senior director, Deloitte India said.
However, the SBI noted that with March CPI around 4.4-4.5 percent, the Q4 actual CPI numbers could undershoot the Reserve Bank of India's (RBI) projections of 5.1 percent for the quarter by around 40-50 bps.
The MSCI All-Country World index of stocks, which tracks shares in 47 countries was less than 0.1 percent higher by 1305 GMT, with European stocks a fraction lower having started modestly higher. Economists had expected consumer prices to rise by 0.2 percent.
State-run SBI highlighted the risks of inflation targeting framework in its note, saying the mark-to-market losses incurred by banks due to tightening of rates on policy expectations have exposed it to risks on the financial stability front.
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