Thursday, July 17, 2008

Inflation surges to highest level since 1991


The U.S. Department of Labor reported the inflation numbers for June yesterday. Before seasonal adjustments, the Consumer Price Index for All Urban Consumers (CPI-U) rose 1.01% in June over May and was 5.02% higher than June 2007. Core CPI (CPI less food and energy) before seasonal adjustments was up by 0.17% compared to May and up 2.41% compared to a year ago. Seasonally adjusted, CPI-U rose 1.06% over May versus expectations of 0.7% and core CPI rose 0.32% instead of 0.2% expected by economists.

The surge in CPI-U was due to energy prices. Energy increased 6.6% in June over May. So far the rises in food and energy have not translated to surges in core CPI.


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