Yesterday I noted the unexpected increase in the core inflation rate and predicted that the Dow would suffer. And as we know the Dow lost 88 points.
Today we learn that consumer prices surged in May. How low will it go?
Consumer inflation registered another sizable increase in May, pushed higher by soaring gasoline prices. And most worrisome, there was further evidence that the jump in energy costs is beginning to cause more widespread inflation troubles.
The Labor Department reported Wednesday that its Consumer Price Index posted a 0.4 percent increase in May after an even bigger 0.6 percent rise in April. Gasoline prices jumped by 4.9 percent and have been soaring this year at an annual rate of 69.4 percent so far this year as motorists contend with pump prices above $3 per gallon in many parts of the country.