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Sections Home Page Local News AP News Archives Business Classifieds Event Calendar Forums Life Opinion Obituaries Photo Gallery Since We Asked Sports Tempo Weather Special Coverage 2006 Britt Festivals --> Shop Our Valley AutoFinder HomeFinder JobFinder Search Our Valley Special Sections Homelife Magazine Joy Magazine Readers Choice 2006 Oregon Golf Info Oregon Wine Info Our Valley Other Publications Local Links Ashland News eSouthernOregon Newspapers In Education Personals Moving Here Movie Listings TV Listings Volunteer Customer Service Advertise With Us Media Kit Place Classified Ad Contact Us FAQ's Home Delivery Site Map --> Email Story to a Friend June 15, 2006 Inflation pushed by gas prices By MARTIN CRUTSINGER The Associated Press WASHINGTON — Gasoline prices are up. So are airline fares and hospital costs. In fact, inflation outside of food and energy is rising at the fastest pace in more than a decade, the government reported Wednesday. The Labor Department's Consumer Price Index showed prices rising by 0.4 percent in May, the third consecutive sizable gain. Investors were relieved that the price pressures were not as widespread as had been imagined. Core inflation, which excludes food and energy, rose by 0.3 percent, slightly worse than expected. Much of the jump was blamed on a statistical quirk in how the government measures shelter costs. It was the third straight 0.3 percent gain and translated into an annualized increase of 3.8 percent over the past three months, the fastest since 1995. Advertisement Economists who believe the Fed is close to ending its rate increases pointed to a second report — the Fed's latest survey of business conditions around the country. It showed the economy has slowed in recent weeks, a development the central bank is trying to engineer with those increases as a way to contain inflation. Gasoline prices were up 4.9 percent last month following an 8.8 percent jump in April. Those gains have pushed pump prices above $3 per gallon in parts of the country. Federal Reserve Chairman Ben Bernanke contributed to a 199-point market drop on June 5 when he called recent increases in core inflation "unwelcome developments" and signaled the Fed stood ready to raise rates further to fight inflation. Among the price increases last month, airline fares rose 2.6 percent, prescription drug prices were up 0.4 percent and hospital costs rose 0.6 percent. Pay checks did not keep up with inflation. Weekly earnings, after adjusting for inflation, fell by 0.7 percent in May, the third decline this year and the biggest since a 0.9 percent drop last September. Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2006 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback online casinos news Home Security Systems California Casinos Men's Clothing Southern Oregon Loans --> GMAT Prep Fundraisers Send Flowers Texas Electric Choice Entertainment Guide --> Casinos Canada Trunks, Footlocker Online Casino Reviews Advertisements Advertisement