The Consumer Price Index, a key inflation reading, rose 4.2% through the 12 months ended in May, according to the Labor Department. This compared to an increase of 3.9% during the 12 months ended in April.

As you would expect, energy prices were the main driver for CPI increase. Also in the article:

this puts more pressure on the Federal Reserve to increase the federal funds rate, which he thinks could happen in August or September. The rate is currently at 2%.


 

Submitted: Jun 13, 2008    Views: 95    Comments: 1    Likes: 1   


View Article: http://money.cnn.com/2008/06/13/news/economy/CPI/


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Comments Received:

Sol Nasisi
Sol_Nasisi

Take a look at the Federal Funds Article I posted:

http://www.bestcashcow.com/the_economy/article/sol_nasisi/fed-funds-rate-discussion

The probability of a Fed increase in August has shot up in the last two weeks and is now at 60%. The market is giving it a 30% chance that the Fed could raise rates to 3.5% in August.

Posted: Jun 13, 2008



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