February 23, 2006 | posted by Michael Baxter in Uncategorized |

The scaremongers would have you pressing the panic button - US Inflation was up to 0.7% in January. If that level becomes the norm, US rates would need to go up and up, and the US economy would catch a nasty cold in the process. But then again, look at the US CPI with fuel and energy stripped out, and it was a sedate 0.2%, higher than last month’s 0.1% but not at a level to have the Fed screaming for upping the rate of interest.