August inflation up more than forecast
The cost of living in the United States rose more than forecast in August as consumers paid more for food, energy and housing, Bloomberg reported.
The Consumer Price Index, which measures the average prices of consumer goods, increased 0.4 percent after a 0.5 percent gain in July, according to figures from the U.S. Department of Labor. Economists had projected a 0.2 percent gain.
The rise in commodity prices earlier this year prompted some companies, such as Lowe’s Cos. Inc., to pass on the higher costs at a time when Americans’ wages are stagnating. Federal Reserve Chairman Ben Bernanke said last week that inflation was likely to moderate as some price increases are “transitory.”
“There has been more momentum in underlying inflation than many had expected,” said Jeremy Lawson, senior U.S. economist at BNP Paribas, in an interview with Bloomberg. Still, “inflation won’t be a constraint on Fed policy. The Fed will be focused on the real economy; they know inflation will be moderating.”
Applications for unemployment benefits unexpectedly rose last week to the highest level since the end of June, according to figures from the U.S. Department of Labor. Jobless claims climbed by 11,000 to 428,000 in the week ended Sept. 10, which included Labor Day.