23rd November 2010
Speaking after the US announced that its Consumer Prices Index (CPI) inflation was an annual 1.2% in October while the "core" rate – excluding food and energy – fell to just 0.6%., Ward said: "These figures have reinforced perceptions that inflation is lower in the US than in other major economies and that pressures are continuing to weaken.
"The bottom line is that inflationary trends are not significantly different from those in other countries and do not warrant the Federal Reserve's decision to implement further unilateral monetary easing – especially with money supply growth accelerating and fiscal policy less restrictive than elsewhere."
Ward added: "The "core" rate has been driven lower recently by goods price weakness – services inflation has been stable. Producer price inflation for core consumer goods, however, has been firming and normally leads the CPI measure."
SEE ALSO: How likely is QE2 in the UK?