Expect Greenspan and the Fed to Raise Interest Rates
WASHINGTON (MarketWatch) — Soaring energy prices pushed the U.S. consumer price index up 0.5% on a seasonally adjusted basis in July, the Labor Department said Tuesday.
Excluding food and energy prices, however, the core CPI increased a tame 0.1%.
The report leaves the Federal Reserve on course to raise interest rates again by a quarter percentage point in September, economists said.
Also, inflation has accelerated,
In the past year, the CPI has risen 3.2%, up from 2.5% on a year-over-year basis in June. The year-over-year gain in the core rate ticked a tenth of a percent higher to 2.1% in July.
The article notes that this is still within the Federal Reserves “comfort zone”, but that it will also mean further increases in interest rates.
A 14.2 percent rise in energy prices over the past 12 months, including a 3.8 percent increase in energy prices in July, was responsible for much of the increase in overall prices.