Surging Gasoline Prices Push CPI Inflation Higher, But Weak Core Fuels Taper Uncertainty

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By Agustino Fontevecchia, Forbes Staff

With the market’s attention focused on Fed Chairman Ben Bernanke and the possible tapering of quantitative easing this year, Tuesday’s inflation numbers must have been slightly disconcerting for investors.  The Bureau of Labor Statistics announced the consumer price index (CPI) jumped 0.5% in June, accelerating since May and breaking a dangerous deflationary trend that had been building up.  Most of the increase, though, came from a surge in gasoline prices, which directly affects consumers across the nation.  The more closely watched core CPI reading, which excludes food and energy, gained a more tepid 0.2%. …read more

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