US consumer prices climb

Source: Exec Digital USA

Date :16/07/2008 06:17:26

Consumer prices post their biggest rise since 2005 on soaring gasoline prices.

Prices paid by US consumers jumped in June, intensifying the pressure on households struggling with falling home prices and the credit crunch.

The Consumer Price Index, the government's key measure of inflation, advanced 1.1 percent during the month, the biggest monthly rise since June 1982, sending the cost of living skywards.

Excluding food and energy, “core prices” climbed 0.3 percent, much more than anticipated.

With energy prices up it less likely policy makers will boost interest rates to stem even bigger price increases.

The CPI report has certainly put the Federal Reserve in a tough policy-making spot.