Food, Gas Prices Rise as Consumer Spending Increases

The Labor Department said Tuesday that the Consumer Price Inflation increased in June after three straight months of decreasing. The gasoline index rose 12.3 percent in June, while food prices rose 0.6 percent. Because of this, the cost of food and energy will likely increase slightly. While price increases are an encouraging sign of economic recovery, Chris Rupkey, chief financial economist at MUFG Union Bank, warned that "inflation is unlikely to reappear on the radar screens of Federal Reserve officials for years." Underlying trends will likely still require that the Federal Reserve inject money into the economy through large-scale asset purchases and providing loans to firms. The government also provided nearly $3 trillion in fiscal stimulus, which led to a record monthly budget deficit in June. Right-rated sources were more likely to see this as evidence to open and keep businesses going during the coronavirus pandemic. Left- and center-rated outlets were more likely to refer to the economy as "ailing" or in bad shape.