Those high energy prices my be good for Chimpy’s base but they are taking a big bite out of our wallets
Higher energy prices took a sizeable bite out of consumers’ wallets in August as inflation rose and negated the value of wage increases, the government reported today.
The consumer price index increased 0.5 percent last month, mostly because of higher gasoline and energy costs, the Labor Department said. Excluding energy and food, the core rate of the consumer price index rose 0.1 percent, less than the 0.2 percent that economists had expected.
Compared with August 2004, prices rose 3.6 percent over all and 2.1 percent excluding food and energy. For the first eight months of the year, inflation is running at an annual rate of 3.9 percent.
Those increases lowered the real average weekly earnings by 0.5 percent in August for about four-fifths of American workers who are in manufacturing or nonsupervisory jobs, according to a separate Labor Department report also released today. Before inflation is taken into account, wages rose 0.1 percent. Compared with August 2004, real wages fell 1.1 percent.