Economic Update

[Adam in CO]

Last Week in the News

Driven by big jumps in energy and food costs, the Consumer Price Index rose 0.4% in February, the Labor Department said March 16. The increase was larger than the 0.3% gain analysts had forecast. Core consumer inflation, which excludes volatile food and energy prices, was milder, rising just 0.2%, exactly what economists had been expecting.

The Producer Price Index -- which measures prices before they reach consumers -- surged 1.3% in February, more than double the 0.5% rise economists anticipated. Even excluding sharp increases in food and energy prices, core wholesale inflation rose 0.4%, the biggest increase since November.

The current account deficit -- which is the broadest measure of the trade deficit because it covers not only trade in goods and services but also investment flows between countries - decreased to $195.8 billion during the fourth quarter of 2006 from a revised $229.4 billion in the third quarter, the Commerce Department said March 14. For all of 2006, the deficit totaled $856.7 billion, an 8.2% increase over 2005's gap of $791.5 billion.

Retail sales nudged up 0.1% in February, as adverse winter weather kept already cautious shoppers away from the malls, the Commerce Department said March 13. The latest retail sales figures were weaker than the 0.3% analysts predicted. A bright spot was auto sales, which climbed 0.9%.

Mortgage rates for the week ended March 15 showed no change from the previous week.

This week look for updates on housing permits and housing starts on March 20.