Deflation fears ease

Some more evidence that "the worst economic crisis since the great depression" may be bottoming out.Consumer prices rose at a higher than expected rate, easing fears that prices would begin to deflate thus tipping the economy completely over and causing a depression: The cost of living in the U.S. rose more than forecast in February, easing concern that the inflation rate will fall below the Federal Reserve’s preferred level. The consumer price index rose 0.4 percent after a 0.3 percent increase in January, the Labor Department said today in Washington. Excluding food and fuel, the so-called core rate climbed 0.2 percent for a second month. Fuel, clothing and automobile costs led the advance last month. The gains last month pushed the annual inflation rate up to 1.8 percent, within the range that most Fed officials define as their objective. Some central bankers, including St. Louis Fed President James Bullard, have warned about the risk of deflation, a ...(Read Full Post)