Economic Data ‘Shows Troubling Mix of Weakness, Inflation’
June 15th, 2011I guess they don’t know the term stagflation over at Reuters.
Via: Reuters:
A closely watched measure of consumer prices logged its biggest rise in nearly three years in May and a regional factory gauge contracted this month, showing the economy facing a troubling mix of weakness and inflation.
The Labor Department said on Wednesday its Consumer Price Index, excluding food and energy, increased 0.3 percent, the largest gain since July 2008, after rising 0.2 percent in April.
Core inflation was lifted by steep rises in motor vehicle and apparel prices. Analysts pointed to supply chain disruptions from Japan’s earthquake as a factor behind the auto price rise.
Economists had expected the core CPI, which is closely watched by the Federal Reserve, to rise 0.2 percent. Overall inflation eased, rising 0.2 percent after a 0.4 percent gain in April, as energy prices finally fell.
Separately, the New York Federal Reserve Bank’s “Empire State” index — a measure of factory activity in New York state — contracted for the first time since November, surprising economists who had expected a rise.
