Updated from 9:06 a.m. EDT.
Consumer prices increased 0.8% in July, doubling the consensus estimate of economists and hitting a 17-year high, according to data released by the Labor Department. On a seasonally adjusted basis, the rise in the consumer price index for all urban consumers was driven primarily by a 4% spike in energy costs due to soaring crude oil and gasoline costs. Food prices also contributed to inflation, jumping 0.9% Economists had expected a 0.4% increase in seasonally adjusted CPI for July. The measure has increased 1.1% in June and 5.6% over the past year. Energy prices have weighed heavily on inflation since May, rising 4.4% that month and 6.6% in June before the most recent increase. During that time, crude oil soared to almost $148 a barrel. Crude has since backtracked from that record high, however, as light, sweet crude for September delivery was trading at $115 a barrel in recent action at the New York Mercantile Exchange. The U.S. Oil ETF(USO Quote) also has fallen more than 21% from its high of $119.17 reached July 11. The ETF closed at $93.75 Wednesday. The unexpectedly high inflation number would seem to damp hopes that the Federal Reserve will consider a cut to its target interest rate anytime soon. The federal funds rate, the target rate for banks to lend to each other, has sat at 2% since April, after the Federal Open Markets Committee had cut it 325 basis points over 16 months.- Loading Comments...
- Loading Comments...
Featured Photo Galleries
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,246.97 | 1,093.01 | 2,151.08 | 34.82 |
Oil *
77.27
|
|
UP
20.03
|
DOWN
0.06
|
DOWN
2.98
|
DOWN
0.04
|
10 Yr
3.48%
SPDR Gold
108.39
|
|
+0.20%
|
-0.01%
|
-0.14%
|
-0.11%
|
Data delayed 20 minutes |














