ARLINGTON, Va. – Consumers may have more to worry about more than the possibility of a double-dip recession – rising consumer prices in July suggest inflation worries.
Consumer prices jumped in July (0.5%) over June (-0.2%), driven by a surge in food and energy prices, noted NAFCU in its just-released Flash Report. The increase in energy prices reverses a strong drop in the previous month and reflects strong growth in gas prices after a two-month downturn.
The increase of core inflation, which excludes food and energy prices, moderated somewhat in July. The year-over-year growth in core CPI of 1.8% is the largest in two years, but is still within the Federal Reserve’s targeted range of 1.5% to 2%, noted NAFCU.
