Oil not only driver behind US inflation slide: New York Fed's Cumming

[LONDON] The recent slump in oil prices is not the only driver behind the slide in US inflation, New York Federal Reserve first vice-president Christine Cumming said on Thursday.

"Global demand is slow," Ms Cumming said at a banking dinner in London. "Even before the recent drop in oil prices, inflation was low and that was quite a surprise."

US inflation hit 0.8 per cent year on year in January while the month on month reading fell to -0.4 per cent.

Ms Cumming is due to retire in June. The New York Fed is the only regional bank not to have a permanent voting seat on the US central bank's policy setting committee.

REUTERS