Cleaning & Restoration Breaking News

Jump in energy costs lift consumer prices 0.3 percent in August

WASHINGTON (AP) -- Consumer prices rose by 0.3 percent in August, the largest increase in five months, reflecting in part a jump in the cost of gasoline that pinched motorists' pockets.

The latest reading on the Consumer Price Index, the government's most closely watched inflation barometer, came after increases of 0.2 percent in June and July, the Labor Department reported Tuesday. August's performance matched economists' expectations.

"Energy prices were the villain again," Ken Mayland, president of ClearView Economics, said of the August CPI report.

Excluding energy and food prices, which tend to swing widely from month to month, "core" consumer prices nudged up by just 0.1 percent in August, down from a 0.2 percent increase the previous month. The showing on the core inflation rate suggested that most other prices are moderate and marked a slightly smaller increase than the 0.2 percent rise that economists were forecasting.

Even with recent increases in the CPI, Fed policy-makers have expressed more concern about inflation going down, rather than up.

Economists have said that the current climate of generally low levels of inflation allows policy-makers with the Federal Reserve Board, who were meeting Tuesday, the leeway to keep a key short-term interest rate at a 45-year low of 1 percent.

At previous Fed meetings and in speeches, Fed Chairman Alan Greenspan and his colleagues have talked about the importance of being on guard against the remote threat of deflation, an economically dangerous and widespread price decline, because of its potential to wreck the economy.

But with the economy showing signs of gaining traction, deflation fears should ease, some economists said.

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.



Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.


Yes, it's only February now - several weeks or months before the thaw depending on where you live - and hopefully this winter has been a profitable one for your business during the historical slow season. But now's also the time to start planning for the busy season - spring - so that you can hit the ground running. In this episode of The Hitman Advertising Show, John Braun shares tips and tricks on how to make this spring your most profitable yet.
More Podcasts

ICS Cleaning Specialist Magazine


2015 March

The March ICS issue features content on cleaning services, green chemistry, encapsulation, terrazzo floors, educating clients and new products.

Table Of Contents Subscribe

Janitorial Work

In addition to residential and commercial carpet cleaning, do you do any janitorial work on the side?
View Results Poll Archive


The Carpet Cleaner's Book of Unlimited Success! (ebook)

Don’t worry about the recession or about your competition.  Now you can be the owner of over 400 ways for carpet cleaning professionals to make more money and get more jobs!

More Products


Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view


facebook_40.png twitter_40px.png youtube_40px.png


Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view