Consumer prices shot up in July at twice the expected rate, pushed higher by surging energy and food costs. The latest surge left inflation running at the fastest pace in 17 years.
The Labor Department reported Thursday that consumer prices rose by 0.8 percent last month, twice the 0.4 percent gain that economists had been expecting.
It marked the third straight month of oversized inflation increases following jumps of 0.6 percent in May and 1.1 percent in June. And it leaves inflation rising by 5.6 percent over the past year, the biggest 12-month gain since January 1991.
Emphasis added by me.
And:
The 0.8 percent rise in consumer prices reflected big increases for energy and food, a pattern that has been happening for months.
Energy prices jumped by 4 percent last month, driven upward by a 4.1 percent rise in gasoline prices. In July prices at the pump were 37.9 percent above where they were a year ago.
Emphasis added by me.
Wait, what did they just say in Chronicles Of Depression 2.0: #179? Let's see:
An inflation gauge tied to the GDP report showed all prices galloping ahead at a rate of 4.2 percent in the second quarter, the fastest pace since the end of last year.
However, when energy and food costs are stripped out, all other — or “core” — prices rose at a pace of 2.1 percent, down from a 2.3 percent rise in the first quarter. Still, the second-quarter’s core inflation reading is outside the Fed’s comfort zone.
Emphasis added by me.
So which is it? Up or down?
Ask anyone who has to buy food!
Previously here:
Chronicles Of Depression 2.0: #179
Chronicles Of Depression 2.0: #157
Chronicles Of Depression 2.0: #129
Chronicles Of Depression 2.0: #128
The REAL Rate Of Inflation
Chronicles Of Depression 2.0: #038
Chronicles Of Depression 2.0: #031
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