Inflation Increases At Fastest Pace Since 1995

From Holden:

Americans are getting robbed at the pumps and it is having an impact on the wider economy.

Consumer spending was sluggish in June as Americans had to divert more cash to filling up their gas tanks and a key inflation gauge rose at the fastest clip in more than a decade.

That raised concerns in financial markets that the Federal Reserve will push interest rates up for an 18th consecutive time because of worries about inflation.

The Commerce Department reported that consumer spending, after adjusting for inflation, posted a weak 0.2 percent rise in June, marking the fourth straight month of 0.2 percent or less.

At the same time, an inflation gauge tied to spending also posted a 0.2 percent increase in June and a rise of 2.4 percent for the 12 months ending in June. That matched the rise in the 12 months ending in September 2002 and was the fastest increase since a 2.5 percent rise in the 12 months ending in April 1995.