51. The dollar rose against the yen as a report of rising U.S. wages spurred speculation the Federal Reserve may raise interest rates later this year to control inflation. 52. The Fed controls inflation by raising the cost of money in government-to-bank loans. 53. The government reported that producer prices increased less than expected in April, lessening the chance that the Federal Reserve will raise interest rates to control inflation. 54. The government thought its only way out of the crisis would be to control inflation and open the economy to investment and competition from outside Mexico. 55. The increase was anticipated and welcomed by bond traders on optimism that the central bank is taking a proactive stance in sustaining growth, while controlling inflation. 56. The main reason for the slump is the high interest rates the government is using to control inflation and attract foreign capital. 57. The Mexican government kept benchmark interest rates high for most of this year in an effort to control inflation as the economy recovered from recession. 58. The idea was to control inflation by keeping a tight rein on the money supply. 59. The modest rise should alleviate concern that the Bank of Canada will raise rates to control inflation. 60. The most important points are expected to include a plan for how to control inflation without causing a recession and how to enforce price controls. |