Reply #35: July Inflation Jumps on Higher Gas Prices

[ozymandius]

WASHINGTON (AP) -- Consumer prices shot up in July, reflecting higher prices for gasoline and other energy products while output at the nations' factories, mines and utilities slowed sharply.

The Federal Reserve reported that industrial production rose just 0.1 percent last, the weakest showing in three months. Output increases at factories and utilities slowed after big gains in June while mining output actually fell.

The overall increase was below what economists had been expecting but they are still looking for solid gains for the rest of the year as factories boost production to restock depleted store inventories.

Meanwhile, the Labor Department reported that its closely watched Consumer Price Index rose 0.5 percent in July, the biggest increase in three months. In July, overall inflation was driven higher by a big 3.8 percent jump in energy costs.

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http://biz.yahoo.com/ap/050816/economy.html?.v=11