Posted on 07/18/2006 7:32:19 AM PDT by Perdogg
BAHOG PANIC!
The Labor Department also reported Tuesday that wholesale food prices increased 1.4 percent last month, with prices for processed chickens jumping 12.1 percent and increases marked by eggs, fresh fruit and dairy products. Wholesale energy prices rose 0.7 percent.
I am still paying the same for my Salmon Monaco and my two glasses of Pinot grigio.
/sarc
Then it's really not based in reality, imo.
IMO this is how the government is going to solve the funding problem for Social Security - by under-reporting inflation. That way, annual COLA adjustments will not keep SS benefits in line with constant dollars. This will function like negative compounding - so that by 2020 or so, benefits will be about 60 percent of what they were in constant late nineties dollars.
You too can beat inflation - just don't eat, drive or buy anything made by those who do.
IMO:
Until wages begin to rise I don't put much stock in any inflation numbers. The fed will use these reports to continue increasing rates, I have said and continue to believe anything over 5.5% will slow the economy, and if it is raised to and remains over 6% the economy will slow drastically and then the fed will have to start lowering to stave off a recession.
Oh, I know. Because they'll be admitting that these "reports" are nothing but fodder to keep the sheep numbly grazing.
Or maybe because there are some people on this website that are ignorant of the fact that "they" keep track of both?
I know reading can be hard for some people, but maybe you should give it a try?
Wholesale prices rose by a larger-than-expected 0.5 percent in June
I know it can be difficult to read someone's entire post, but try as well. I mentioned the wholesale inflation by sector.
Core inflation is meant to mask real inflation. Last I checked, I do need to purchase food and energy every month. So it's absurd to track such separately.
Which is stupid, quite frankly. Someone just looking at the headline of the article would think inflation wasn't that bad last month.
Neat. Let's use my inflation definition next. I exclude everything but the price of a pack of bic pens. They were $1.99 last month and this month. So mysterio inflation index says inflation is 0%. Whoopitydee.
I am astounded that some folks can't come to grips with the fact that one makes short-term, pocketbook decisions based on short-term inflation figures, and long-term, strategic decisions on long-term inflation figures. It is possible to do both.
So you contradicted your own point by including the information the government was trying to hide. That's funny.
Core inflation is meant to mask real inflation.
Which is why they don't report inflation by sector. Except they do.
Last I checked, I do need to purchase food and energy every month.
Then I'll bet you wish they reported wholesale inflation.....oh wait, they do.
So it's absurd to track such separately.
They report core because it is less volatile, not to hide it from people who can't read past the title of the article.
If core upsets you so much, ignore it and focus on the wholesale number.....which is in no way hidden.
And I am saying that if you want to gauge the impact of inflation on the average working stiff, give the total figure, so he can see what is happening to his paycheck.
I didn't say the government was trying to hide it. I was saying splitting inflation misrepresents the total impact.
If core upsets you so much, ignore it and focus on the wholesale number.....which is in no way hidden.
Once again, look at the headline. See the number that someone browsing the news would see. And the impression would be that inflation is not that bad.
Plus, "core" inflation is completely mis-named. Gyrations in food and energy have the greatest dynamic impact on my discretionary income, as with most working stiffs.
Right.
It's a great way for the government to mask actual inflation:
Because mask doesn't mean hide. Got it.
See the number that someone browsing the news would see. And the impression would be that inflation is not that bad.
See my earlier comment about reading being hard.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.