Wholesale prices rise 1.6 pct. Biggest jump in food costs in 36 years (Dollar devaluation)

WashingtonPost ^

[quesney]

WASHINGTON — Wholesale prices jumped last month by the most in nearly two years due to higher energy costs and the steepest rise in food prices in 36 years. Excluding those volatile categories, inflation was tame.

The Labor Department says the Producer Price Index rose a seasonally adjusted 1.6 percent in February, double the 0.8 percent rise in the previous month. Outside of food and energy costs, the core index ticked up 0.2 percent, less than January’s 0.5 percent rise.

Food prices soared 3.9 percent last month, the biggest gain since November 1974. Most of that increase was due to a sharp rise in vegetable costs, which increased nearly 50 percent. That was the most in almost a year. Meat and dairy products also rose.

[MarkL]

That's accounted for in calculating the price indexes. If a 5oz can of tuna costs a dollar, and drops to 4oz but staying a dollar, BLS would record that as a 25% price increase.

True, but I'll bet there are a lot of people who don't notice that they're paying more for the same product.

Mark

[JDW11235]

Thanks! With voter censorship being thrown around, it gets hairy. People always tend to forget what happens when the shoe is on the other foot.

Favoritism towards a group (see Holder/Obama/Napolitano) and unequal justice under law (Note Black Panthers/”Hate Crimes”) always comes back to bite one in the behind!