Wednesday, July 16, 2008


Prices up:

A crucial measure of inflation rose at its fastest rate in 16 years, the government said on Wednesday, just a day after the chairman of the Federal Reserve warned that inflation poses a significant risk to the nation’s economic outlook.

The Consumer Price Index, which measures prices of a batch of common household products, rose 1.1 percent in June, the Labor Department said. That means inflation accelerated at nearly twice the rate in May, when the index grew 0.6 percent.