Consumers Prices Up 2.9%: Labor Dept.

According to the Labor Department announcement Friday, consumer prices have risen 2.9 percent in July as compared to a year ago, according to the Associated Press, a significant rate of inflation suggesting U.S. workers are earning less than a year ago.

The consumer price index rose 0.2 percent in July, according to the federal bureau, and inflation matched June’s 2.9 percent pace, marking the highest level since 2012. Higher housing and food costs are being attributed for the increase in prices, while prices for energy, medical care and apparel decreased slightly.

Average worker weekly earnings have fallen 0.1 percent over the past year. During the same period, gas and transportation prices have increased and the Federal Reserve has raised interest rates twice. Two more rate hikes are expected by the end of the year, putting a damper on the Trump Administration’s promised 3 percent GDP gains.