U.S. consumer inflation rebounds in July; Index rises 0.5%; core rate up 0.2%

Marketwatch ^ | 8.18.11 | Greg Robb

[Free Vulcan]

WASHINGTON (MarketWatch) — The cost of living for Americans rebounded in July after a rare decline in June, data showed Thursday.

The consumer price index, tracking the rate of inflation at the retail level, increased 0.5% in July, the biggest gain since March, the Labor Department said.

The growth was above the consensus forecast of economists polled by MarketWatch who had been looking a 0.4% increase.

[Free Vulcan]

Let's all give a big thanks to Bernanke's monetary policy for this.

[FreedomProtector]

0.5*12= 6%

government statistics finally starting to catch up to reality at the grocery store....even only shopping sales/coupons/generics etc.....

[Marty62]

Let me be the 1st to say:
Just the beginning of hyperinflation if this bunch is allowed to continue their failed policies. (they will never admit they are wrong)

[NELSON111]

So...for all you money guru's out there...here is a question: What is the result if the Fed continues the current interest rates near zero...but the inflation rates on actual goods climb?

What's the result of that (yes...I know its not good...but what are the actual results)? Is it staflation? Will the Fed be promted to do QE III...will bond rates soar or will the FED be forced to raise the rates?

Curious.

[CowboyJay]

If consumer prices rise, but basic commodities stay put, it could result in some hiring.

Not holding my breath though. Too much liquidity in the upper end of the markets causing commodity inflation. When commodities are going up faster than consumer goods, you get supply shock and stagflation.

[ridesthemiles]

Who wants to bet me that NObama will still NOT give out Social Security increases?

We have been at the same level for 3 years now.