Money Morning: US Economy - Soaring Consumer Prices and Mount - by Jason Simpkins
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US Economy - Soaring Consumer Prices and Mount - by Jason Simpkins
Consumer prices rose sharply in July even as home foreclosures spiked, making it increasingly likely the economy will stall in the year’s last half under the weight of soaring unemployment, declining home values and accelerating inflation. Banks foreclosed on 77,295 homes in July, 8% more than a month prior, and 183% more than a year ago, RealtyTrac reported. More than 680,000 homes have been repossessed since the beginning of August 2007. The Consumer Price Index (CPI) jumped 0.8% in July, the Commerce Department said yesterday (Thursday). On a year-over-year basis, the consumer prices climbed 5.6%, their biggest surge since 1991.
