Inflation hits more than gasoline
It isn’t just gasoline prices that are pinching consumers’ wallets. The cost of health care, clothing, hotel rooms and airline travel all jumped last month, pushing the core inflation rate up at the fastest pace in 2 1/2 years.
The Labor Department reported Wednesday that its closely watched Consumer Price Index increased by 0.6 percent in March, the biggest rise since October.
Even more worrisome, prices excluding the volatile energy and food categories rose by 0.4 percent last month, the biggest one-month increase for core inflation since August 2002.
Underscoring that inflation pressures are mounting, the Federal Reserve said Wednesday in its latest survey of business conditions in the Fed’s 12 regions that “price pressures have intensified in a number of districts and most report that high or rising energy prices are a concern across sectors.”
The Labor Department reported that gasoline prices climbed 7.9 percent last month, the biggest increase since an 8 percent surge in October.
Both times, the increases were driven by soaring global oil prices — a record $55 per barrel in October, a new high of $57 per barrel at the beginning of this month.
While crude oil prices have retreated recently, gasoline prices are expected to remain above $2 per gallon through the summer driving season.
BPA plans budget hearing in Spokane
The Bonneville Power Administration will hold a public hearing in Spokane on Tuesday on its proposed budget for energy efficiency, renewable energy, fish and wildlife and other program areas.
The hearings are part of what the BPA calls the “Power Function Review” for its 2007-2009 rate period. The budgets for various programs will help determine the federal agency’s costs as it sets rates for next year and beyond, said Ed Mosey, a spokesman for the BPA. Those rates would take effect in October 2006.
The new rates would affect the costs of many regional utilities, including Inland Power and Light, Kootenai Electric Cooperative and Vera Water and Power, which buy power from the BPA. Avista Utilities does not buy a significant amount of power from the federal agency.
The NW Energy Coalition said in a news release that it would like to see the BPA significantly increase its budget for renewable energy, energy efficiency and fish and wildlife restoration programs.
The Spokane hearing will be held from 5 p.m. to 9 p.m. at the Airport Ramada Inn, 8909 Airport Rd.
Lydig to build R&D facility for Schweitzer Labs
Spokane-based Lydig Construction Co. will build a $2 million research and development building for Pullman’s Schweitzer Engineering Laboratories.
The 21,000-square-foot building will be constructed on land adjacent to other Schweitzer buildings at the company’s campus, said company President Ed Schweitzer.
It will be available for use by early 2006.
This is the first project Lydig will do for Schweitzer, which has about 700 workers in Pullman and seven buildings currently on its property. A week ago, the privately held company announced it has hired its 1,000 employee worldwide.