U.S. Consumer Prices Rise 0.5 Percent; Core Rate Increases by 0.1 Percent

[papau]

http://www.bloomberg.com/news/economy/economies.html

U.S. Consumer Prices Rise 0.5 Percent; Core Rate Increases by 0.1 Percent
Sept. 15 (Bloomberg) -- <snip>Americans paid 0.5 percent more for goods and services last month, the Labor Department said today. Energy prices rose the most in two years, partly because Katrina shut down refineries and drilling along the Gulf Coast. Inflation was tame outside of energy and food, with core prices rising 0.1 percent, less than expected. <snip>

Consumer prices were up 3.6 percent for the 12 months ended in August compared with a 3.2 percent year-over-year gain the previous month. Core prices were 2.1 percent higher, the same as in July.

So far this year, consumer prices are rising at a 3.9 percent annual rate compared with a 3.5 percent increase at the same time last year. Core prices are rising at a 2 percent annual pace, compared with 2.1 percent in the year-earlier period.

Workers' earnings adjusted for inflation fell 0.5 percent in August, the biggest drop since November, after falling 0.1 percent in July, the Labor Department said in a separate release. <snip>

[David__77]

1. Expect inflation to rise.

The era of very, very low inflation is probably coming to an end. We will see 6-7% inflation within a year or so. There may not be a recession, but there will indeed by higher inflation.

[nadinbrzezinski]

2. We already are,

those of us who shop for groceries can tell you this, the increase in prices is no longer the seasonal varaiation

Here is the trick, what is called the basic basket is not counted in the inflationary rate... nor are energy prices. If you take both of them into ccount, and most households do... we are looking at anywhere from 10% to 15% already