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"So far we do not see evidence yet of a significant acceleration in inflation," he said.
The Fed is aiming to end a recent acceleration in inflation, caused in part by the economy's growth.
Bond prices rose sharply yesterday after a government report on consumer prices for May showed no acceleration in inflation.
"It is widespread, this modest acceleration in inflation," said Patrick Jackman, a senior economist at the Labor Department's Bureau of Labor Statistics, which compiles the C.P.I.
The Fed is not expected to raise rates now as it waits to see whether its moves to increase rates six times since last June will do enough to prevent the economy from overheating and starting an acceleration in inflation.
Retail rice prices have already jumped by as much as 60percentt in recent months in Vietnam, trailing increases in wholesale prices but leading a broader acceleration in inflation.
Similar(47)
"The acceleration in rental inflation appears to be driven entirely by higher rents in the Northeast," Mr. Baker said.
He is wrong on multiple levels.First, it's very difficult to discern a steady increase, to say nothing of acceleration, in the inflation figures.
Hometrack's latest monthly index of city house prices showed a "notable and unseasonal acceleration" in price inflation in February, with the annual rate of growth at an 18-month high of 11%.
The People's Bank of China, the central bank, has reported an acceleration in wholesale price inflation this winter.
But unless the stock market takes off again or unambiguous acceleration in growth and inflation appear, the Fed will show great patience later this year.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com