WASHINGTON (Reuters) - Clothing and shelter costs in March spurred the biggest rise in core U.S. inflation in a year, the government said on Wednesday in a report that cast doubt on a quick end to Federal Reserve interest-rate rises.That's right, the dreaded "I" word. No amount of cheap, illegal labor or corporate downsizing is going to keep it in check for long. And the deficit just keeps on growing.
The Labor Department said energy prices helped push the overall consumer price index up a steep 0.4 percent, matching Wall Street projections. Excluding food and energy prices, the index advanced 0.3 percent, a bit more than forecast.
BTW: 50% of the deficit is from tax cuts, 30% from defense spending (including Iraq war), 14% from discretionary spending, and only 6% is from entitlement programs like social security; but we know which of these culprits the Bushies will blame and try to "fix" now, don't we? Then there's the trade deficit. Guess what accounts for the biggest part of that? C'mon, guess!