Rocketing Fuel Costs Drive Up Inflation
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WASHINGTON — Consumer prices shot up in June at the fastest pace in 26 years with two-thirds of the surge blamed on soaring energy prices.
The Labor Department reported today that consumer prices jumped 1.1% last month, much worse than had been expected. Energy prices rocketed upward by 6.6%, reflecting big gains for gasoline, home heating oil, and natural gas.
The big rise in prices cut deeply into consumers’ earning power with average weekly wages, after adjusting for inflation, dropping by 0.9% in June, the biggest monthly decline since 1984.
The report on retail inflation followed similarly grim news yesterdayday that wholesale prices had shot up by 1.8% in June.
The Federal Reserve Chairman, Ben Bernanke, told Congress yesterday that the Fed was concerned about the threats posed by rising inflation.
