Oil and food make consumer price index explode on the upside – the stagflation is the major challenge for the Federal Reserve
Marla Guthrie
Aug. 14, 2008

The fast acceleration in prices of oil and food has shown its major impact in the consumer price index. 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.

Core inflation, which excludes volatile food and energy costs, rose 0.3 percent in July, slightly higher than the 0.2 percent increase that economists had expected. For the past 12 months, core inflation has risen by 2.5 percent, the highest 12-month change since February.

Oil and food make consumer price index explode on the upside – the stagflation is the major challenge for the Federal Reserve
Marla Guthrie
The fast acceleration in prices of oil and food has shown its major impact in the consumer price index.
READ MORE>>

Oil surges on weak inventory, retail sales slumps – stagflation continues to hit the heart of the economy
Joe Weinman
Wall Street tumbled sharply as inflation worries remerged and the retail sales data...
READ MORE>>

Dollar gains from shrinking trade deficit and increasing weaknesses in EU and Japanese economies
Fred Day
US Dollar’s upward rise is boosted by the shrinking trade deficit and the increasing...
READ MORE>>

Consumers are trimming spending as gasoline prices remain near $4 a gallon, home values fall, credit becomes more difficult to obtain and the job market weakens
Fred Day
The US economy is weakening very fast. The reports this week will show, service...
READ MORE>>

Oil price will fall very slowly extending the bear market in stocks for another seven years – demography shift favors shorting stocks
Karen Zuba
The oil market is showing signs of long term top. The fundamentals point to a classic...
READ MORE>>

The oil genie – how it will kill the oil companies in the next ten years
Alan Hershey
The oil genie was created to boost the profits of the oil companies. The lower dollar...
READ MORE>>

Bush legacy – a failed capitalist did everything a socialist leader would have done
Paula Rabke
He was elected by the conservatives and corporate special interests. He tried to serve...
READ MORE>>

MORE ARTICLES >>