This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7254969.stm

The article has changed 4 times. There is an RSS feed of changes available.

Version 1 Version 2
US inflation may stall rate cuts US inflation may stall rate cuts
(40 minutes later)
US consumer price growth rose by 0.4% in January, official figures show, more than many analysts had forecast. US consumer prices rose by 0.4% in January, official figures show, more than many analysts had forecast.
According to the US Labor Department, the main drivers of price growth were food and healthcare costs. According to the US Labor Department, the main drivers of the price growth were food and energy costs.
The figures come as the US Federal Reserve has been slashing interest rates in an effort to kick-start slowing economic growth.The figures come as the US Federal Reserve has been slashing interest rates in an effort to kick-start slowing economic growth.
Analysts said that inflation concerns may hamper the Fed when it comes to cutting rates again in the future. Analysts say that inflation concerns may hamper the Fed when it comes to cutting rates again in the future.
Housing market
Separate data showed that the US housing market was still experiencing problems, with construction indicators hovering near their lowest levels since 1991.Separate data showed that the US housing market was still experiencing problems, with construction indicators hovering near their lowest levels since 1991.
According to the Commerce Department, applications for building permits, fell by 3% to 1.048 million units. Housing continues to be an area that will act as a drag on the economy going forward here Kevin Flanagan, Morgan Stanley
Analysts said that disappointing figure offset an increase in housing starts which rose by 0.8% in January. According to the Commerce Department, applications for building permits fell by 3% to 1.048 million units.
An increase of unsold homes and mounting mortgage defaults probably will weigh on the housing market and the wider economy, analysts said. Analysts said that disappointing figure offset an increase in housing starts, which rose by 0.8% in January.
That was the first increase since October and followed a plunge of 14.8% in December.
An increase of unsold homes and mounting mortgage defaults will probably weigh on the housing market and the wider economy, analysts said.
"Housing continues to be an area that will act as a drag on the economy going forward," said Kevin Flanagan of Morgan Stanley."Housing continues to be an area that will act as a drag on the economy going forward," said Kevin Flanagan of Morgan Stanley.
Stagflation fears
The Fed cut interest rates twice in January to 3% in an attempt to boost the economy, which has been dragged down by the collapse in the US housing market.
Neil Mellor at Bank of New York Mellon said the inflation data could raise fresh fears of stagflation - rising prices and stagnant growth.
"The data ostensibly pose a dilemma [for the Fed]," Mr Mellor said.
"We strongly suspect, however, that the figures are unlikely to deter [the Fed] from cutting interest rates further."