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Inflation Jumps by Biggest Amount in 6 Months
Duration: 0:58Source: YouTube
BusinessInflation Jumps by Biggest Amount in 6 MonthsInflation Jumps by Biggest Amount in 6 MonthsThe Associated PressA 5.7 percent surge in gas costs and a three-tenths of a percent rise in food prices in May helped inflation grow at the fastest pace in six months. (June 13)A 5.7 percent surge in gas costs and a three-tenths of a percent rise in food prices in May helped inflation grow at the fastest pace in six months. Overall, consumer prices rose by six-tenths of a percent last month. But core inflation - which excludes energy and food - edged up a more moderate two-tenths of a percent. That raised investor hopes that consumer spending - which accounts for more than two-thirds of the U.S. economy - won't be hurt as much as the market has feared.So far this year, consumer prices are rising at an annual rate of 4 percent, compared with a 4.1 percent increase for all of 2007. Those numbers are raising eyebrows in Washington.The Federal Reserve has shown an increasing concern about the impact of more expensive commodities. Fed Chairman Ben Bernanke said that the Fed will "strongly resist an erosion of longer-term inflation expectations." The comments have raised expectations that the Fed's next move will be to start raising interest rates.
Rating: (0 ratings) Views: 13 Added: Jun 14, 2008
Category: News Author: AssociatedPress
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