16 September 2012

Gas prices fuel surge in inflation as output shrinks

[WASHINGTON]
A JUMP in the cost of gasoline pushed US consumer prices up in August at the fastest pace in more than three years, squeezing spending on other items and threatening to slow economic growth.
At the same time, production at the nation's factories, mines and utilities dropped by 1.2 per cent, the biggest decline since March 2009, other data yesterday showed.
The sour mix of numbers was tempered by an unexpected increase in consumer sentiment in early September and signs underlying inflation pressures remained contained.
"There is a real risk that the rising cost of food and fuel may well put additional pressure on household spending power,"said Chris Williamson, chief economist at Markit.

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...

View All My Posts Here