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Posted by Bhumika Ghimire May 18, 2006 |
According to Chron.com, "Worse-than-expected inflation data sent stocks skidding Wednesday amid fears that soaring energy and housing costs may prompt the Federal Reserve to continue raising interest rates.
The Dow Jones industrial average fell more than 200 points after the Labor Department reported that the Consumer Price Index rose 0.6 percent in April. The spike was fueled primarily by an 8.8 percent increase in gasoline prices. The consumer index rose at a 4.1 percent annual rate over the past three months, higher than the Federal Reserve's tolerance range of 2 to 3 percent."
For more on the Labour Department report, please visit, this link