Consumer Price Index (CPI) rose 1.1 percent during June

July 16, 2008 by · Leave a Comment
Filed under: Industry News 

Note: Well it looks like the genie might be out of the bottle. We had the wholesale price index increase 1.8 percent for June as well yesterday when you take into account food and energy costs. I believe over the next couple of months we will see the Fed start focusing more on inflation that the threat to the U.S. economic growth.

Release:

Consumer prices in June rose by the biggest amount since 2005 on a continued surge in gasoline prices.

The Consumer Price Index advanced 1.1 percent during the month, the biggest monthly rise since September 2005, the Labor Department said. That was well above the 0.7 percent increase economists polled ahead of the report were expecting.

Prices were up 5 percent from a year ago, the biggest year-on-year rise since 1991.

Excluding food and energy prices, the so-called core CPI rose by a more tame 0.3 percent, but that rise was still higher than the 0.2 percent gain expected. Energy prices advanced 6.6 percent during the month, reflecting a 10.1 percent surge in gasoline prices as consumers are paying well in excess of $4.00 a gallon.

Source: Reuters

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