Gas, electricity prices fuel higher Oahu inflation - Hawaii News Now - KGMB and KHNL

Gas, electricity prices fuel higher Oahu inflation

HONOLULU (AP) - Rising gasoline prices and electricity rates fueled an increase in Honolulu's inflation rate during the first six months of the year.

The Bureau of Labor Statistics says the city's Consumer Price Index rose by 2.5 percent compared to the first half of 2009.

The inflation rate is up from all of 2009, when prices rose by a scant 0.5 percent.

The Honolulu Star-Advertiser reported the city's inflation rate for January through June also outpaced the 2.1 percent national average for the same period.

The state Department of Business, Economic Development and Tourism is forecasting consumer prices will stabilize at 2.2 percent in 2010 and 2011 in reflection of a slow recovery from the recent economic downturn.

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