US CPI increased by 0.5% month over month in July...a 6% annual rate of increase!
This is the official BOGUS CPI!
If the official CPI is running at 6%...imagine what REAL inflation is.
So much for that 2% target always spouted by Fed officials.
Buying silver or gold with a 21 month intro 0% APR credit card sounds like a steal when you consider real inflation.
U.S. Consumer Prices Rise More Than Forecast By Shobhana Chandra and Alex Kowalski – Aug 18, 2011 2:08 PM MT
The cost of living in the U.S. climbed more than forecast in July, which could make it harder for Federal Reserve Chairman Ben S. Bernanke to convince colleagues to immediately act to spur growth after manufacturing in the Philadelphia region plunged in August.
The consumer-price index increased 0.5 percent from June, more than twice the 0.2 percent median forecast of economists surveyed by Bloomberg News, figures from the Labor Department showed today in Washington.
The Philadelphia Fed’s general economic index dropped to minus 30.7 this month, the lowest since March 2009, when the economy was in a recession.
Stocks slumped and gold prices soared to a record as the data showed the world’s largest economy was in danger of shrinking even as inflation picked up. Another report showed fewer Americans on average filed claims for unemployment benefits over the past month, indicating the job market is holding up for now.
“There’s a tremendous loss of momentum,” said John Herrmann, senior fixed-income strategist at State Street Global Markets LLC in Boston, who projected manufacturing would contract. “Increasing evidence that the economy is drifting closer to a recession could prompt Chairman Bernanke into action before year-end,” Herrmann said. At the same time, Herrmann said, the cost-of-living data may limit his options: “The inflation figures don’t yet give the Fed the ammunition to roll out a new round of non-conventional monetary easing.”
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