US consumer prices rebound slightly, manufacturing sector remains strong

Despite negative expectations, consumer prices in the world's most powerful economy were published better than initially projected in February of this year. Moreover, the annual CPI exited the negative territory it fell into last month, while showing a zero growth. Moreover, inflation was at 0.2% on month-to-month basis and in line with estimates. However, the core reading of consumer prices, which does not include energy and food products, remained at a better mark of 1.7% during the previous month, up a tenth of a percentage point from January. Additionally, US manufacturing sector continued to expand strongly in March. A survey, published by Markit Economics, revealed a slight decrease in the PMI Index for the US manufacturing industry. The benchmark surged to 55.3 points this month from 55.1 points in February. A reading above 50 points is highlighting the rising activity.

Meanwhile, St. Louis Fed President James Bullard announced that the Federal Reserve should raise interest rates as soon as possible, stressing that low rates are not appropriate for growing US economy any more. Speaking at City Week conference in London, he also gave a prediction that US economy will gain more momentum in the second quarter of this year after a slow-down in January-March, helped by lower prices of oil and a subsequent increase in consumer spending.