US inflation numbers reach epic 17 year high
According to recent records released, consumer prices are up in 2007. Inflation hits 17 year high for US.
In a report released by the US Labour Department, US inflation is looking bad, at a 17 year high. Behind the inflation surge is energy costs and food costs that continue to push higher.
According to the report, out today, consumer prices rose in the US by 4.1 per cent in all of 2007. This marks the second year that steady inflation rise has been seen. In 2006, consumer prices rose by 2.5 per cent.
Behind it all is energy prices here, which skyrocketed by 17.4 per cent through the 2007 year. Food prices also have hurt numbers with their 4.9 per cent increase in cost. That number is the largest increase in food prices the country has seen since 1990.
Consumer prices rose by 0.3 per cent in the month of December and 0.8 per cent in November. The only category recorded that did not see a rise in 2007 was apparel which was down 0.3 per cent. In all other categories, without regard to food and energy, the consumer price increases rose just 0.2 percent in the month of December and for all of 2007 only rose 2.4 per cent.
With the investor markets and many worldwide on-looking hoping for a bank cut by the Federal Reserve at the end of the month, these inflation numbers may be worrisome. Often, with increasing inflation, rates are raised rather than lowered. Yet, most economists believe that these inflation rates will not stop the Federal Reserve from cutting rates once again in hopes of helping the property market there. Most analysts believe that the Federal Reserve will drop rates by a half of a percentage point this month.