During July a considerable surge was noticed in wholesale inflation that left the increasing prices at the fastest pace in almost thirty years. After that recent drop in oil and other commodity prices, there are hopes that inflation may be bridled, but some economists believe that it will take some more time to ease that pressure on Wall Street after the widespread nature of the July price surge.
According to the Labor Department report, there was 1.2 percent increase in wholesale prices during July and the rising costs for energy and other materials were the basic factors behind surge.
The increase in prices was more than double of 0.5 percent gain that was expected by some economists and it left inflation by 9.8 percent that was the highest during the past 12 months.
Core prices that didn’t include energy and food increased 0.7 percent in the last month and it was the highest increase since November 2006 and almost more than thrice the 0.2 percent increase that was expected.
According to the Commerce Department report, the construction of new homes and apartments slipped to a yearly rate of 964,000 units during July and it was the lowest in 17 years.
During the last week, a government report revealed that consumer prices jumped 0.8 percent in July and it was the highest increasing rate since 1991.
This article is the property of http://www.latestbusinessupdates.com
Copying and publishing any article from our site is strictly NOT allowed