This is why Greenspan and FOMC keep raising rates 25 basis points every other meeting. Oil is taking an inflationary toll on our economy.

Date:   8/20/2005 12:49:40 PM ( 19 y ago)

BUSINESS/FINANCIAL DESK | January 20, 2005, Thursday

Price Index Rose 3.3% In '04, Highest In 4 Years

By LOUIS UCHITELLE (NYT) 1090 words
Late Edition - Final , Section C , Page 1 , Column 5

ABSTRACT - Labor Department reports Consumer Price Index rose 3.3 percent in 2004, largest increase since 2000; higher inflation rate is result of surge in oil prices early in year; index fell by 0.1 of a percent, first month-to-month decline since July; many Wall Street economists predict that Federal Reserve's policy makers will continue to raise interest rates by quarter of one point at their meetings this year until crucial federal funds rate gets at least above 3 percent and perhaps 3.5 percent; rate is currently at 2.25 percent; real hourly wages, adjusted for inflation, fell 0.4 percent in 2004, first decline since early 1990's; Commerce Department reports housing starts rose in December to strong annual rate just above 2 million from 1.8 million; starts totaled 1.95 million for year; graph; map; photo (M)




 

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