From the Wall Street Journal one hour ago….
The 1.1% monthly increase in the consumer price index for June was the fastest pace since a surge in the wake of Hurricane Katrina, due in large part to energy prices, while the core rate excluding food and energy came in at 0.3%. The year-over-year increase was 5%, the highest since 1991 when inflation was easing with that economic downturn.
The Fed braced for a summer surge in headline inflation due to rising commodity prices. Its policy statement after the June meeting indicated that officials expected inflation to moderate later this year and next year. That cast attention to the post-summer period, unlike the April statement that said inflation was expected to moderate in coming quarters. That suggested Fed officials would be holding their breath on inflation, hoping it comes down as expected due to slower growth creating slack in the economy. END
Editor’s note: You know inflation has arrived when a Nobby burger, fries and a large coke costs $10!