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Consumer Prices Jump in July; Inflation at 17-Year High

By the Associated Press

Posted Aug 14, 2008 9:07 AM CDT
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(AP) – US consumer prices shot up 0.8% in July, twice the expected rate, pushed higher by surging energy and food costs, the AP reports. The spike left inflation running at 5.6%, the fastest pace in 17 years, the Labor Department reported today. It marked the third straight month of soaring prices, following jumps of 0.6%  in May and 1.1% in June.

The core inflation figure was driven by increases in the cost of clothing and airline tickets. But with energy and food prices retreating this month, and the dollar gaining, the Wall Street Journal predicts the report isn't likely to lead the Fed to raise interest rates. Concern will still be focused on rising unemployment and weakening consumer spending.

Chart shows the percent change in the Consumer Price Index from prior month, seasonally adjusted for the past 13 months
Chart shows the percent change in the Consumer Price Index from prior month, seasonally adjusted for the past 13 months   (AP Photo)
Consumer prices rose much more than expected in July, stoking inflationary fires.
Consumer prices rose much more than expected in July, stoking inflationary fires.   (Shutterstock)
The report marks the third straight month of oversized inflation.
The report marks the third straight month of oversized inflation.   (Shutterstock)
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Copyright 2012 Newser, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

 
inflation • Federal Reserve • economic indicators • core inflation • consumer prices

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