While heavy financial coverage in today’s newspapers focused on the battering the stock market took Thursday, with the Dow industrials down 419.63 points to 10,990.58, taking a back seat (or buried) was news that the cost of living made a surprise jump in July --- the most in four months, observes Grumpy Editor.
Key media, echoing Washington, have labeled inflation “tame” in recent months.
Consumer prices last month rose 0.5 percent, led by higher food and energy costs, reported the U.S. Bureau of Labor Statistics.
It came in more than twice the rate that some economists expected and markedly higher than June’s 0.2 percent decline.
Over the last 12 months, the all items index increased 3.6 percent before seasonal adjustment.
The core inflation rate, excluding food and energy prices, was up 0.2 percent in July after two straight months of 0.3 percent increases.
On Wednesday, the Labor Department announced the producer price index (PPI), which measures price changes in goods before they reach consumers, rose 0.4 percent in July, the biggest increase since January.
For those following the consumer price index (CPI), the tally for August is slated to be released on Sept.15 at 8:30 a.m., EDT.