Retail prices went higher this past May according to a report by The Labor Department. They reported that the Consumer Price Index, excluding food and energy, rose 0.3 percent. This is in direct correlation of the increase in fuel prices, and the American consumer is now paying for the increase in more ways than just their gas tank.
Joe Naroff, of Naroff Economic Advisors in Holland, PA said, "For the last three months, overall inflation has run at a 5.7% pace and is up 4.2% over the year. The so-call core has risen at a very disturbing 3.8% pace the past three months and 2.4% since May 2005. Over the past three months, only food has gone up by less than a 3% rate. Worst of all, sugar and sweets are up at a nearly 12% pace the last three months. That should say it all."
With inflation rising as it has been, expect to see the Federal Reserve Board trying to influence interest rates. Naroff believes that the gentle nudging they have been giving will turn out to be a complete halt. ■
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