Economic Report: Consumer Price Jump Is Biggest Since 1991 - 08/15/08

[Earth Bound Misfit]

Economic Report:

U.S. prices jumped in July marking the largest year-over-year spike since 1991. Energy prices shot up by 29.3 percent and food costs up by 6 percent. Meanwhile, paychecks are not keeping up with that inflation, marking a decline in the U.S. standard of living. Real earnings in July were 3.1 percent lower than they were at the same time last year.

[dkf]

1. The dollar is recovering and energy is falling.

It should be better soon.

[Warpy]

2. Not for a long time, I'm afraid

because high energy prices are working their way though the entire economy and they haven't fallen that far, although people who got into the end of the bubble in spot market futures are taking a serious financial bath now.

In fact, all commodities futures are coming down, as are precious metals. However, we're not going to see that much of a decrease because that decrease in speculator prices isn't being felt at the retail level, nor will it be.