Consumer Prices Surge Most Since 2005 (Not 1982)

Wednesday, July 16, 2008 | 10:19 AM

U.S. consumer prices soared in June. The stagflationary mix of rising unemployment, strained financial markets and rising inflation, painting the Federal Reserve into a box.

~~~
UPDATE: 7/16/08  3:51pm

Not-so-tiny correction: The rise in the CPI was not the worst since 1982; it's actually the worst since 2005. The BLS gave reporters inaccurate historical comparisons, but they have since corrected them. They stand by the actual numbers!)

~~~

Consumer Price Index surged 1.1% in June, almost twice the rate in May, and far above the consensus expectations of Wall Street economists, who were looking for a 0.7% rise. It was the biggest monthly gain in the inflation indicator since June 1982.  Year over year, the price index has risen 5%, the biggest 12 month jump since May 1991.

Medical care prices, meanwhile, increased a modest 0.2%, while clothing prices rose just 0.1%. These were the only bright spots, as other components posted sharp gains:

Transportation prices rose 3.8%
Airline fares swelled 4.5%
Energy prices jumped 6.6%
Gasoline prices spiked 10.1%
Natural gas prices rose 4.9%.
Food and beverage prices rose 0.7%
Commodity prices soared 1.9%  (a record monthly high).

(Charts below)

The core rate increased 2.4% from June 2007, also far more than consensus expectations.

Adding insult to injury, the Labor Department noted that "average weekly earnings of U.S. workers, adjusted for inflation, fell 0.9% in June." This means that the typical American household income is failing to keep up with rising prices.

>

Cpijune2

Cpi3

Charts via Jake


>

Source:
Consumer Price Index Summary:  JUNE 2008
BLS, July 16, 2008
http://www.bls.gov/news.release/cpi.nr0.htm

~~~


Wednesday, July 16, 2008 | 10:19 AM | Permalink | Comments (21) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c52a953ef00e553a26d978833

Listed below are links to weblogs that reference Consumer Prices Surge Most Since 2005 (Not 1982):

Comments

How long before Dick & Jane begin robbing banks?

Posted by: Chief Tomahawk | Jul 16, 2008 10:34:58 AM

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner