Consumer Prices Jump Most in 2 Years

CPI surge on rising energy costs sparks inflation worries
By Jim O'Neill,  Newser User
Posted Dec 14, 2007 9:36 AM CST
Gas prices are advertised at a gas station in San Jose, Calif., Wednesday, Nov. 21, 2007.    (Associated Press)
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(Newser) – November’s consumer price index spiked 0.8%—the biggest rise since September 2005—as soaring energy costs pushed up prices on an array of  goods and services. The increase, higher than the 0.6% anticipated, reignites inflation worries, causing experts to predict that further Fed rate cuts are unlikely, Bloomberg reports.

The core consumer rate, which excludes the prices of food and energy, was up 0.3% in November, also higher than expected. Rising inflation leaves the Federal Reserve little room to maneuver if the economy, already slowed by the housing slump and credit morass, stalls further.