Inflation jumps 0.4% as costs rise for food, energy, other items

Los Angeles Times ^ | 06/17/2014 | JIM PUZZANGHERA

[SeekAndFind]

Inflation unexpectedly jumped last month as higher prices for food, energy and other items pushed the annual rate above the Federal Reserve's preferred 2% target, the Commerce Department said Tuesday.

The new data could lead central bank policymakers to act more quickly to raise rock-bottom short-term interest rates.

The consumer price index rose 0.4%, the biggest monthly increase since February 2013, the Commerce Department said. The rise followed increases of 0.3% in April and 0.2% in March, a trend that mirrors improving economic data this spring.

For the 12 months ended in May, the index was up 2.1%. That was the highest 12-month rate since October 2012.

The surge in prices last month surprised economists, who had anticipated the index would rise just 0.2%. Inflation largely has been subdued since the Great Recession.

Food prices were up 0.7% in May, the biggest increase since August 2011. Higher gas and electricity prices led energy costs to rise 0.9%.

[SeekAndFind]

What this piece of news will do to the interest rates... WE SHALL SEE....

[I want the USA back]

That’s 5% annually. The ruling elite doesn’t care since their salaries are automatically adjusted, as well as their pensions. The rest of us poor slobs have to live with less.

[Farmer Dean]

These are the official government numbers,the true rate is at least double that.

[Farmer Dean]

These are the official government numbers,the true rate is at least double that.

[NY.SS-Bar9]

My food prices are up about 40% YTD - not sure what unicorn came up with 0.7% for the month.

[ExTxMarine]

This is the percentage they are willing to admit! The REAL inflation rates are MUCH higher!

When you go into a grocery store, purchase four plastic bags worth of food and it costs $96 (and NONE of it was alcohol, tobacco or raw meat) then inflation is up MORE than 2%!

These numbers are worth less than the unemployment numbers which the White House is shilling!

FUBO! I am done being nice!

[The South Texan]

“Unexpectedly” Drink....

[Starstruck]

My wife and I have been married for 44 years and empty nesters for 15. We have pretty much established the meals we like to eat and shop accordingly. That cart of groceries we buy weekly has increased dramatically in the last few years. These food inflation rates are ridiculously low.

I'm on SS and realize that the government figures affect COLA which if too high will further increase the debt. I can deal with that, but would love to have the government quit lying to me.