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Friday, June 13, 2008
Inflation Jumps 0.6% in May
Associated Press
Inflation shot up in May at the fastest pace in six months, pushed higher by soaring costs for gasoline and other types of energy.
The U.S. Labor Department reported Friday that consumer prices rose by 0.6% last month, the biggest one-month increase since last November, as gasoline costs surged by 5.7%. Food prices, which have also been rising sharply, were up 0.3% as the cost of beef and bakery products showed big increases.
Core inflation, which excludes energy and food, edged up a more moderate 0.2% in May. But even there, core prices are up 2.3% over the past 12 months, above the Federal Reserve's comfort zone.
FOX Translator
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If you've seen TV footage of an active trading pit, you've probably noticed the atmosphere is uproarious and wild. The reason for all the shouting? Open outcry.
On exchange floors that use the open-outcry system, traders shout prices they want to sell while others yell back the price they want to buy at. They also use hand gestures to communicate with each other.
This system has been used for a long time, but is being replaced with modern technology. Some argue electronic exchanges can do the job faster and more accurately. One of the few exchanges that continue to use open outcry is the New York Mercantile Exchange.
