May 15, 2012

Inflation in the U.S. held steady in April, at 0.3%, easing some concerns.  A drop in energy costs gets the credit and re-affirms the view of some policy makers that rising fuel prices would have only a temporary effect.  Taking food and fuel out, core inflation rose 0.2% in April.  Looking over the last 12 months core and consumer inflation stand at 2.3%   

Retail sales in the States climbed in April, but at a slower pace, up just 0.1% following a 0.7% pump in March.  Warmer weather may have pulled shoppers into the stores a little earlier, transferring some April sales into the previous month.

In Canada, the price for resale homes crept up, ever so slightly, in April, increasing just 0.9%.  The Canadian Real Estate Association also says April sales were up 11.5% Y/Y.

And in Europe, Greeks will be going to the polls again.  Efforts to create a coalition government have collapsed.  The on-going uncertainty has bond yields climbing in Greece, Italy, Spain and Portugal.  On the up side, strong exports from Germany kept the Eurozone from slipping into recession in Q1.  The figures show the economy was flat, compared to the previous quarter, in the 17 nation currency compact.