In this news, it reports that, according to the Labor Department, the US consumer prices rose by 0.2% last month. Compared with the expectation of 0.3%, this is a buoyed result to investors, because the current low inflation means there is little pressure to raise interest rates. It also points out that this news demonstrates that, after a few reports showing higher inflation trends, the problem of high inflation has not been trickled down to the consumer level.
Additionally, it points that the rise was largely driven by energy prices, which rose for the ninth consecutive month. Further, according to Jennifer Lee at BMO Capital Markets, the price pressures are mainly caused by the food and energy categories.
The rise of consumer price is less than expected. This is reflected by the less consumer prices rise (0.2%) compared by the expectation of inflation ( 0.3%). The reason is due to real inflation rate is lower than expected inflation rate, which is caused by less money supply, probably caused by Federal Reserve prints less money.
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