New York, NY, United States (AHN) – U.S. stocks soared higher Friday after new data showed that inflation does not appear to be a problem.
Just after the opening bell on Wall Street, the Dow Jones Industrial Average jumped 82 points, the Standard and Poor’s 500 Index was up 10 points and the NASDAQ rose 20 points.
Giving stocks an edge up was the Consumer Price Index, the government’s key measure of inflation, which showed prices barely budged in October, and that in the past 12 months prices were up 3.4 percent, nearly unchanged from a 3.5 percent annual inflation rate in October.
Gas prices fell 2.4 percent in the month, but were still up 19.7 percent for the year. Food prices rose a scant 0.1 percent in November, and 4.7 percent year-over-year.
The CPI measure of inflation comes from a broad range of goods ranging from food to gas to clothing to health care services to cars.
Overall, wages are still lagging inflation. Average hourly earnings rose just 1.8 percent in the 12 months ending in November, and the unemployment rate hovers just below 9 recent.
Oil was unchanged in morning trading at $93.70 a barrel, and gold gained some ground, trading higher by $15 at $1,590 a troy ounce.
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