rw
Evans says it's different this time. Phew, I'm glad he's got a handle on it - I was worried reading your stuff.
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Reuters
US inflation tame despite steel, fuel costs-Evans
Tuesday February 24, 3:07 pm ET
CHICAGO, Feb 24 (Reuters) - U.S. Commerce Secretary Don Evans said on Tuesday that soaring steel and energy costs have not triggered a significant inflation risk in the United States.
Speaking to reporters at National Manufacturing Week, Evans said inflation appears tame for now, mostly unaffected by the rising costs of steel and fuel.
"Inflation seems to have continued to be very much in check," Evans said. "I think we're fortunate that our economy is not as energy intensive as it was, say 20 or 30 years ago. The economy is much more efficient than in years gone by."
Steel prices are high because of growing demand and concern about a steel shortage as manufacturing picks up.
Meanwhile, crude oil and natural gas prices have remained above historic levels, boosted by low commercial inventories in industrialized nations and concerns about supply disruptions.
Both factors affect the cost of doing business for manufacturers.
Evans said that while the United States would benefit from reliable, affordable energy sources, rising energy prices do not translate into the kind of increase in inflation seen decades ago.
On Friday, however, a government report showed a rise in consumer prices for January fueled by a sharp rise in energy costs. The consumer price index, the most widely used gauge of U.S. inflation, climbed 0.5 percent, compared with a 0.2 percent rise a month earlier, the Labor Department said. |
