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PPI surges 1.9%, most since 1974 (Producer Price (Wholesale)Index))
MarketWatch.com (by Dow Jones) ^ | 10/18/05 | Rex Nutting

Posted on 10/18/2005 12:14:30 PM PDT by SierraWasp

Edited on 10/18/2005 1:14:29 PM PDT by Admin Moderator. [history]

WASHINGTON (MarketWatch) - U.S. wholesale prices rose a larger-than-expected 1.9% in September, the biggest jump in 31 years, the Labor Department said Tuesday.

Price increases were led by a 7.1% rise in wholesale energy prices, the biggest jump in 15 years. Food prices also soared, rising 1.4% on a record 49% increase in egg prices.


(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: index; inflation; prices; wholesale
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Huge spike!!!
1 posted on 10/18/2005 12:14:38 PM PDT by SierraWasp
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To: SierraWasp

Results of the Fed's "Easy Money" policy. I called this one about a year ago.


2 posted on 10/18/2005 12:16:09 PM PDT by Clemenza (Gentlemen, Behold!)
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To: SierraWasp

This is gonna make Greenspan's replacement even more important.


3 posted on 10/18/2005 12:17:23 PM PDT by gondramB (Conservatism is a positive doctrine. Reactionaryism is a negative doctrine.)
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To: Clemenza
Why do I have this uneasy feeling that I had when Nixon resigned and Ford was wearing that silly WIN button that stood for "Whip Inflation Now!" Next, we'll be repeatind the Carter years with stagflation and the "Misery Index!"

Well... History does repeat it'self and the more things change, the more they stay the same!!!

4 posted on 10/18/2005 12:21:50 PM PDT by SierraWasp (The only thing that can save CA is making eastern CA the 51st state called Sierra Republic!!!)
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To: gondramB

True!!!


5 posted on 10/18/2005 12:22:28 PM PDT by SierraWasp (The only thing that can save CA is making eastern CA the 51st state called Sierra Republic!!!)
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To: SierraWasp

Yep, all we need is for polyester to come back into fashion, and for herpes to become "hip" again and we will be back to the 70s. Even see kids with shag haircuts and people buying fondue sets again.


6 posted on 10/18/2005 12:23:38 PM PDT by Clemenza (Gentlemen, Behold!)
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To: SierraWasp

Yes, but even here the silver lining would be...

Remember WHO WE GOT after Carter??

Another Reagan would almost be worth it.


7 posted on 10/18/2005 12:23:43 PM PDT by RockinRight (I am beginning to think conservatism is buried somewhere under New Orleans' mud...)
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To: SierraWasp

Every energy crisis is going to result in the exact same scenario. And we are in a big one right now. Wait until people get their natural gas bills this winter. Two short months away. Then you will see the real deal.


8 posted on 10/18/2005 12:23:45 PM PDT by mysterio
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To: SierraWasp

Now all we need is price controls, bell bottoms, and vans with waterbeds in them.


9 posted on 10/18/2005 12:24:04 PM PDT by Moonman62 (Federal creed: If it moves tax it. If it keeps moving regulate it. If it stops moving subsidize it)
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To: mysterio
Every energy crisis is going to result in the exact same scenario. And we are in a big one right now. Wait until people get their natural gas bills this winter. Two short months away. Then you will see the real deal.

Yes, people will reduce their consumption and prices will fall. It's called supply and demand and it works every time.

I noticed in my neck of the woods gas prices are down about 50 cents a gallon in the last few weeks.

10 posted on 10/18/2005 12:33:05 PM PDT by va4me ("Government isn't the solution to the problem, it is the problem" - Ronald Reagan)
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To: SierraWasp

More MSM trying to talk the economy into recession.


11 posted on 10/18/2005 12:35:58 PM PDT by balch3
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To: SierraWasp

I thought the headline was about ulcer or GERD medication.


12 posted on 10/18/2005 12:41:58 PM PDT by HEY4QDEMS (Ham & Eggs: A day's work for a hen, A lifetime commitment for a pig.)
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To: SierraWasp

This will be the largest uptick in the index for a long time. The current inflation scare will be relatively short-lived. We are in a long-term deflationery environment through about 2017. Sorry I don't have time to give you all the details here, maybe I'll do a topic on the subject.

Greenspan is not to blame for this spike, as claimed by a poster above. Energy prices are the reason for the spike. As properly noted above by another poster, oil and natural gas prices will decline as supply increases. Supplies will increase over time. The question is how well supply increase keep up with demand increase.

Congress is at fault if exploration and supply does not increase faster than demand. The oil and natural gas is waiting to be taken out of the ground. Congress needs to incentivize the process. So far, Congress has sat on its' collective hands, but pressure will build soon. Let's just hope they take proper action, not short term quasi-fixes.


13 posted on 10/18/2005 12:58:28 PM PDT by SaxxonWoods
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To: Clemenza
I called this one about a year ago.

And you're bragging about it?

14 posted on 10/18/2005 12:59:42 PM PDT by the invisib1e hand (denial is the opiate of the masses.)
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To: SierraWasp
Old news. This spike includes last months crude and gasoline prices which have since dropped by about 15% for crude and about 30% for gasoline. he more important number is the one that is x the more volatile components of the PPI

The core rate is up 2.6% in the past year, unchanged from August. (this is more important).
15 posted on 10/18/2005 1:02:43 PM PDT by Eagles Talon IV
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To: SaxxonWoods

But...but...what about the Carribou?


16 posted on 10/18/2005 1:04:09 PM PDT by Eagles Talon IV
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To: va4me
"I noticed in my neck of the woods gas prices are down about 50 cents a gallon in the last few weeks."

Ain't it amazin' how everyone screams bloody murder when gasoline prices go up and remain totally silent when they drop? I have come to expect it by the MSM who only want to offer doom and gloom and blame it on Bush but it even goes on here. Prices in parts of NJ have gone from $3.39 per gallon to $2.61 in less then a month. Listen to the crickets.....

17 posted on 10/18/2005 1:09:00 PM PDT by Eagles Talon IV
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To: SaxxonWoods
We are in a long-term deflationery environment through about 2017.

It's pretty amazing to see such long-range predictions when we do not even know what will happen next quarter. Could you please elaborate on this?

18 posted on 10/18/2005 1:13:06 PM PDT by TopQuark
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To: Eagles Talon IV
Ain't it amazin' how everyone screams bloody murder when gasoline prices go up and remain totally silent when they drop?

Ah, but conservatives are only conservative in everything but economics: that is the sign of the times that even conservatives do not like markets.

19 posted on 10/18/2005 1:14:52 PM PDT by TopQuark
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To: TopQuark

Nice catch, TQ, it is a rather brazen prediction, isn't it? Years of study went into that little remark, and it would take a long time to explain it properly. I study such things in my work, demographics are the base for most of my predictions. I have predictions going out to about 2025, but they are large-scale notions. I don't know what will happen next quarter either, lol.

If I get time, I'll do an article on it here, and you will be welcome to flame away if you wish.


20 posted on 10/18/2005 1:24:44 PM PDT by SaxxonWoods
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