Inflation Rises in June on Jump in Price of Gasoline
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Consumer prices rose at a surprisingly steep rate in June and the nation’s factories continued to pull back production, according to new data released today that affirm that the economy remains weak but is not entering a dangerous cycle of falling prices.
The consumer price index rose 0.7 percent last month, the Labor Department said, driven primarily by a 17.3 percent rise in the price of gasoline. But even excluding volatile food and energy costs, prices rose more than analysts expected, by 0.2 percent.
The data offers the most solid evidence yet that the nation has avoided the onset of deflation, a dangerous process in which the weak economy causes prices to fall, leading people to further rein in spending and setting off a vicious cycle. Instead, prices for a wide range of goods — clothing, medical care, even automobiles — saw price increases in June.
Source/Full Story:: washingtonpost.com



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