Food and Energy Costs Boost CPIby Tim Manni
No surprises here. The Consumer Price Index, a key gauge of inflation, rose 0.8% in July, twice the increase economists had predicted. Prices rose 5.6% in July from a year ago, the largest year-over-year increase reported by the Labor Department in over 17 years.
Rising food and energy prices were once again to blame for the stark increase in CPI. Energy prices rose 4% in July, increasing 29.3% in a year-over-year basis, while food prices rose 0.9% in, 6% since last year.
Eliminating the ever-volatile cost of food and energy, the “core” measurement of CPI increased only 0.3% in July, still slightly higher than the 0.2% economists hoped.