The government of US says consumer prices shot up in June by the largest amount in 11 months, reflecting the biggest jump in gasoline prices in nearly five years.
This was a little higher than the expected 0.6% predicted by economists.However,the big jump is only temporary as inflation is not going to happen in economies emerging out of recession.Although we can expect a substantial amount of infaltion when we are back on the road of economic growth but for now,given the high amount of cyclical or keynesian unemployment taking place which keeps a lid on wage price and,thus prevents wage price inflation.
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