Runaway prices stun market watchers
Consumer prices rose by .8% last month, more than double analysts expectations. Of course, with artificially low interest rates one can’t really expect anything different; but it does make it damn clear that the Federal Reserve has nowhere to go but up with interest rates.
While the mainstream media is spinning the oil price drop means inflation has peaked the core inflation (excluding food and energy) still rose .3% which was also above analyst estimates.
So basically our dollar doesn’t go as far, our homes are heading in to the toilet, employment is up surprisingly and the government wants to raise taxes to bail out of our financial institutions for the greed and largesse. Sweet, happy Thursday. God bless America.
From Bloomberg:
U.S. consumer prices jumped to a 17- year high in July, reducing the scope of the Federal Reserve to lower interest rates as economic growth slows.
The consumer price index climbed 0.8 percent, twice as much as anticipated, the Labor Department said today in Washington. The cost of living was up 5.6 percent in the year ended in July, the biggest rise since January 1991. So-called core prices, which exclude food and energy, also advanced more than projected.
The surge last month reflected energy prices that have since declined, signaling July may represent the peak in inflation. Still, increases went beyond food and fuel, including gains in clothing, airline fares and education, likely intensifying discussions among Fed policy makers about how quickly to shift toward raising rates.
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Runaway prices stun market watchers
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