Inflation jumped 0.5 percent in July

[sabra]

http://www.msnbc.msn.com/id/8970911/

Inflation jumped 0.5 percent in July
Sharply higher energy prices lead to increase; housing starts slip

WASHINGTON - Consumer prices shot up in July, reflecting sharply higher prices for gasoline and other energy products. But new car prices fell by the biggest amount in 30 years, helping to keep underlying inflation pressures tame.

The Labor Department reported Tuesday that its closely watched Consumer Price Index rose 0.5 percent in July, the biggest rise in three months. In July, overall inflation was driven higher by a big 3.8 percent jump in energy costs.

However, outside of food and energy, prices remained well behaved. The core inflation rate edged up by just 0.1 in July. This price category, which is closely watched by the Federal Reserve, was helped in July by a 1 percent drop in new car prices, the biggest decline since January 1975.

[booksenkatz]

1. Outside of food and energy

That says it all.

Gee, I'm so glad I don't need to purchase food or energy! Ever since I took that course, "Photosynthesis: A Primer," I only need the sunshine to live.

[Javaman]

2. LMAO!!!!

[kysrsoze]

3. Assuming no ripple effect, that translates to 6% annually

Much more when you watch energy ripple through all manufacturing, agriculture and the service sector.

Now, what's wage growth again? 2 to 3%? What about healthcare costs too? We're all LOSING money.

[Newsjock]

4. They must go home and laugh themselves silly after spewing this crap

http://missoulian.com/articles/2005/08/16/ap/headlines/d8c10is80.txt

... Analysts said the big 0.5 percent overall increase in consumer inflation last month was not as serious as it might first appear because outside of energy, prices remained well contained.

"Energy is a killer, but if you don't use it, you're not seeing a whole lot of inflation," said Joel Naroff, chief economist at Naroff Economic Advisors, a consulting firm in Holland, Pa.

[krkaufman]

5. 1% drop in car price "the biggest decline since January 1975"

THis should be viewed as a bit of a red flag.