The AFP details:
Inflation roared back in July at the fastest pace since March, squeezing consumers just as the economy appears to be veering toward recession, government data showed Thursday.
The inflation numbers came amid a batch of worse-than-expected data on the jobs market, manufacturing and housing, and as US and European stocks markets plunged on rising recession fears.
A sharp rebound in gasoline prices and continued increases in food prices drove last month's inflation surge, the Labor Department said Thursday.While I am concerned with excessive inflation over the longer term if the Fed determines they should pursue an "inflation or bust" policy (the alternative as I see it is painful deflation... a lose lose if you ask me), the latest figure does have me less concerned with inflation over the nearer term. As can be seen, the higher than targeted inflation level is almost solely due to higher crude prices feeding into gas prices. This has already reversed in part this month.