US CPI Increased 0.1% in March

US consumer prices rose 0.1% in March, the US department f Labor delivered today. The Consumer Price Index (CPI) rose 2.3% as compared to March 2009, signaling that the US economy is picking up strongly after the worst recession since World War II. The core index excluding fuel and food showed the same monthly reading signaling a 1.1% surging on yearly adjusted basis. The core CPI rate rose 1.1% from March 2009, after a 1.3% surge the previous month. The gain for the year to March turned out to be the smallest in last 6 years. The result was predicted by economists. 0.1% inflation remains within the frames forecast by the US government.

This spring such retailers as Home Depot and Wal Mart Stores offer a variety of discount programs encouraging retail sales.

CPI is a basic economic indicator measuringchange of retail prices for goods and services including food, clothes, fuel, transport, medical services etc.

UK Inflation Climbs in October

The inflation rate in the UK climbed higher than experts predicted showing the first rise in last eight months. UK consumer prices rose 1.5 percent compared to 1.1 last months. The experts predicted 1.4 percent rise.

The reasons of such reading are and air fare costs and fuel prices as fuel producers shift their trading terms. However, between September and October the cost of fuel dropped by 0.7 percent.

Prices for second-hand cars, caused by a shortage of stock, rose at the fastest pace pushing up inflation in October, the figures released by the Office for National Statistics showed today. Climbing prices of recorders, games and toys also contributed to inflation.

According to the Bank of England`s growth and inflation forecasts released November, 11, the inflation will not reach 2 percent level until 2012. As the UK economy recovers there are some risks of rise in consumer prices, that is why the Bank of England ties not to withdraw stimulus measures too early and sticks to its low lending rate policy.

Japan Inflation in Record Drop

Figures of Japan inflation rate are likely to show that inflation in Japan remained negative in May. The drop in prices for food and energy as well as with weak demand at home and abroad raised deflation in the first economy in Asia. Prices of goods also dropped for the third consequent month. Prices in Japan fell by the most on record last month, bringing fears of a new deflation, as official data from the Ministry of Finance shows .

Consumer prices fell 1.1% in May compared to same month a year ago, the most since records began in 1970. Japan was previously trapped in a deflationary spiral, where prices of goods kept falling, in the 1990s. To sum up the analyst`s forecasts, the say economy management should avoid collapse into deflationary spiral. Analysts consider deflation to be damaging to an economy because consumers delay purchasing until prices fall further. This factor drives down prices more.

Economic output and trading fall if there is little consumer spending. According to the latest data has the worst stage of recession for Japan may be over, the drop in consumer prices follows the worst recession in the economy of Japan.