Consumer Price Index virtually unchanged

UPI ^ | 3/14/08

[bjs1779]

WASHINGTON, March 14 (UPI) -- The seasonally adjusted Consumer Price Index was virtually unchanged in February, the U.S. Department of Labor reported Friday.

Following a 0.4 percent rise in January, analysts had expected a 0.3 percent rise in February but that did not occur.

The index for energy declined in February with a 1.7 percent increase in energy services offset by a 1.9 percent decline in energy commodities, the report said.

Downturns were noted in apparel and new and used cars. Healthcare costs rose modestly at 0.1 percent and food prices rose 0.4 percent.

The index for housing increased 0.2 percent, but shelter, including rent, whjch rose, and lodging, which declined, was unchanged.

The indexes for fuel oil dropped 1.5 percent, and the index for electricity dropped 0.3 percent, the report said.

The core rate also held with no change on the month.

[SwankyC]

Heard some financial bigwig interviewed on Glenn Becks CNN show the other day and he claims govt figures are about 9 months behind reality.

[CodeToad]

Of course the CPI doesn’t include the costs of fuel and food, two expensive items everyone needs.

[thackney]

7. What goods and services does the CPI cover?
http://www.bls.gov/cpi/cpifaq.htm#Question_7

The CPI represents all goods and services purchased for consumption by the reference population (U or W) BLS has classified all expenditure items into more than 200 categories, arranged into eight major groups. Major groups and examples of categories in each are as follows:

FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, service meals and snacks)
HOUSING (rent of primary residence, owners’ equivalent rent, fuel oil, bedroom furniture)
APPAREL (men’s shirts and sweaters, women’s dresses, jewelry)
TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance)
MEDICAL CARE (prescription drugs and medical supplies, physicians’ services, eyeglasses and eye care, hospital services)
RECREATION (televisions, pets and pet products, sports equipment, admissions);
EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories);
OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses).

[bjs1779]

I was trying to find where the markets supported their figures, especially in the energy index for Febuary. What do you think?

.

[RobRoy]

Well, SOMEBODY’s lying. I guess I’ll just have to go with my own personal anecdotal evidence.

And your charts.

[thackney]

I also found residential prices up for Gasoline, Diesel, heating fuel oil, propane during the month of February.

http://tonto.eia.doe.gov/oog/info/twip/twip.asp

[reformedliberal]

I was grocery shopping yesterday. Many, many items up 20%-30% and some 50%. But, what struck me the hardest was watching several elderly ladies in their 80s or older pushing their nearly empty carts and looking extremely anxious and lost. It was chilling to see people who are watching their savings erode and who may have outlived their families with the same expressions I used to see on video of the old USSR, where old women were selling off their possessions on the street.

We are feeling it, as is everyone I know. Business is slowing slightly. The next few months will see lower heating and electricity bills, which will help, some. But we are not in a stable economy, no matter what the massaged stats show.

[NVDave]

Those are the futures markets.

If the CPI is being computed off futures prices, then it is completely useless and they’re a bunch of clowns — after all, the “C” in CPI stands for “Consumer.”

Here in the west, we used to see a dip in diesel prices in December - that’s when we’d buy our diesel for the upcoming farming season.

This year, there wasn’t any dip - just a period of time when the prices quit going up.

But then I’ve been railing about the idiots in the government missing inflation for years - because we farmers have been seeing inflation non-stop since 2004.

Here’s a little clue for you about how disconnected the clowns in DC are from reality:

Farmers held a meeting with the local fertilizer and chemical rep in February. He brought along a rep from the fertilizer manufacture to “explain things.”

And here’s what the fertilizer rep said:

“We’re going to keep raising the prices until you guys quit buying it.”

Direct quote.

11-52-0 fertilizer was $245/ton in 2001, and you used to be able to lock in a price in autumn, pre-pay 50% and take delivery in the spring.

This month, 11-52-0 is $850/ton, and they won’t hold a price for any longer than a week, and you’d better have a check when the truck shows up. They won’t let you pay on account any more.

[bjs1779]

I couldn’t find spot prices, but the closest future month pretty much mimics spot. I heard about the fertilizer costs. Seed is sky high and in short supply also. All at a time when our food stockpile is at the lowest level since 1946 - with double the population to boot.

[bjs1779]

But, what struck me the hardest was watching several elderly ladies in their 80s or older pushing their nearly empty carts and looking extremely anxious and lost.

Their social security payments are based on the CPI. It really is a crime in progress.

[nascarnation]

That’s a stealth way to help solve the social security insolvency problem. It will take a lot more than that to fix it, but it is part of the plan.