US isolated on Paul Wolfowitz
Washington: The United States finds itself isolated among its key allies with regard to World Bank President Paul Wolfowitz, for want of a strategy aimed at saving Wolfowitz's job as World Bank president. Wolfowitz is under attack due to a pay and promotion controversy involving his companion.

The US administration found support only from Japan in a conference call of officials from Group of Seven industrial countries for a plan to separate consideration of Wolfowitz's ethics violations in the deal for his companion from whether he could continue credibly as head of the bank.

The G7 countries, which also include France, Britain, Germany and Italy, are the bank's biggest funders and dominate its decision making.

A World Bank panel on Monday found Wolfowitz broke bank rules on conflict of interest by seeking a different resolution to Riza's job status than would have applied to other staff and had "cast himself in opposition to the established rules of the institution."
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US inflation seen easing
Washington: A government report on Tuesday said consumer prices rose less than expected in April, offering signs that inflation pressures may be easing.

The Labor Department's Consumer Price Index advanced 0.4 per cent in April, slightly less than Wall Street expected and below the 0.6 per cent rise in March.

The core rate, which excludes volatile food and energy prices, increased 0.2 per cent. While that marked a slight step up from March, the 12-month increase in core prices slipped to 2.3 per cent, the smallest gain in a year.

Analysts said this suggested the Federal Reserve's efforts to control inflation may be succeeding, even though medical costs rose and food and energy prices continued to go up.

Stock prices soared and the blue chip Dow Jones industrial average was up over 70 points in afternoon trades, as the report could provide scope for Fed rate cuts later in the year.
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