By Trang Nguyen, THETAKEAWAY: U.S.Consumer Price Index Rose 0.4 percent in February > A Jumpin Gasoline Price Accounted for Over 80 Percent of Change in AllItems Index > U.S. DollarSlip vs. its Major Peers U.S. inflation rose themost in 10 months in February on recent rises in energy costs,consistent with Fed Chairman Ben Bernanke’s statement at acongressional panel on Wednesday that r ising gasoline priceswill create “temporary jump” in inflation whilereducing American’s purchasing power. The seasonally adjustedconsumer price index for all urban consumers rose 0.4 percent lastmonths, the U.S. Bureau of Labor Statistics reported today. Thereading matched consensus forecast from Bloomberg News survey. Overthe last twelve month, the index edged up 2.9 percent. The lessvolatile figures which exclude food and energy rose 0.1 percent ona monthly basis and 2.2 percent on a yearly basis, in line witheconomists’ expectations. Since inflation outside of food andenergy is slowing, inflationary pressures in the U.S. economyremains subdued. U.S. Consumer Price Index (YoY): June 2010 to Present Prepared by Trang Nguyen A surge in the cost of living in the U.S. in February was mainly attributable to a jump in gasoline. The gasoline index sharply mounted last month, accounting for more than 80 percent of the change in all items index. Despite a fall in natural gas price (-9.8%), the gasoline increase (+12.6%) pushed the energy index 3.2 percent higher. Meanwhile, the food index remained unchanged in February, with the food at home index having been flat for the second straight month. Besides, the indexes for new vehicles, medical care and household furnishings and operations all advanced while index for apparel, recreation, used cars and trucks, and tobacco all declined. AUDUSD 1-minute Chart: March 16, 2012 Charts createdusing Strategy Trader – Prepared byTrang Nguyen In the minutesfollowing the Consumer Price Index report, the U.S. dollar losesits footing versus most of its major trading partners. As can be seen from the1-minute AUDUSD chart above, the currency pair immediately jumpedapproximately 60 pips from 1.0530 to 1.0590 within thirtyminutes. The
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