Posted on 01/16/2010 6:54:20 AM PST by blam
Consumer Prices: Now Up 2.7% Year-Over-Year
by: Tim Iacono
January 15, 2010
The Labor Department reported a 0.1% rise in consumer prices from November to December and, largely due to much lower energy prices in early 2009, annual inflation is rising, now up to 2.7 percent, with a menacing trajectory.
Of course, many will dismiss the higher year-over-year inflation rates as transitory, however, they will be with us for at least the first half of the year as long as current energy prices remain relatively high.
While the price of gasoline hit bottom in December of 2008 at $1.65 a gallon, the price at the pump didn't rise much above $2 a gallon until May, meaning that, current prices (a national average of $2.75 a gallon as of last week) still represent very large annual increases, though not quite as large as the 50+ percent increase last month.
Moreover, natural gas prices are now rising and will soon be compared to sharply lower prices in early-2009. In the December report, household heating costs actually declined from year-ago levels but, based on wholesale prices, that will soon turn into large year-over-year gains. Of course, these price increases must go through utility companies to reach consumers, so it's not the same thing as the corner gas station raising their prices, but it will be an important factor nonetheless.
[snip]
But half the snarky con-econ-free-market geeks here at FR told me we were going into a deflation when I said there would be inflation. Not that I am a I told you so sort of guy.
I’m not.
Really.
Even if I told you so.
Which I did.
Swell. No COLA in my pension check for 2010 and 2011 because SS people will not get their COLA. Gas and heating prices jumping. Med prices going up, health care changing to Lord knows what. Sense of disquiet, indeed!
2. European Inflation, slowly reviving
The EU released its December inflation figures, revealing a further pick-up in headline rates (thanks again to the commodities boom and bust), while core inflation showed a tentative bottoming out with 1.1% vs 1.0% in November. The European Central Bank also released its statement on monetary policy this week where it ruled out any near term inflationary pressure, noting that rates remain appropriate for keeping inflation below the 2% target in the near to medium term. Given that the economic outlook for Europe remains relatively subdued with risks to the upside and downside reasonably balanced, a view of inflationary pressure not being excessive is probably about right.
You are not part of the Democratic coalition. No benefits for you! Community activists like Acorn and big money bankers get trillions. But regular Americans just get the chaos as the system breaks down.
Silly fool. When they talked about "the future" they were talking about tomorrow - literally.
Looking past the next day's stock buy/sale is out of the realm of their thinking.
I think we've just seen the first of many SS cuts to come.
Read this:
Were those the same people that dismissed anyone as a "doom and gloomer" that warned others about how our economy was nothing more than a ponzi scheme/house of cards during the past several years? I wonder whatever happened to those guys. You don't hear from them much anymore...
It's not just the seniors on SS, it's retired Military, Veterans on disability and those on SS disability also.
We know there is an 8% cut to Medicare with an increase in premiums, there is also a NEW Fee to Tricare the retired Military's health plan. There are also cuts to the VA in obamadeathcare. And as we know the famed Mayo Clinic in AZ is no longer accepting Medicare patients, those on Medicare are having a very hard time finding a doctor to accept them. Tricare which is administered from the same agency, their members are next on the list to be shunned by the medical community.
obamadeathcare paid for by cuts and taxes on the most vulnerable, Veterans, retired Military, the disabled and senior citizens, so he can give illegals free health care.
Pick up the article send it to as many senior citizens as you know. Print it out along with the Washington Compost article and pass it around. Seniors have not been informed of the cuts. I watch our evening news in Memphis and have not seen word one about it.
Demand your GOP elected congress critters grow a backbone and talk about the cuts/taxes on seniors in obamadeathcare. We gray hairs are the voting block most likely to vote each election cycle. I called Lamar Alexander and Bob Corker and made those demands. No use calling my commie House member, he's an 0 butt kisser deluxe.
Other than energy and used car prices there isn't much going on with price inflation. New car prices spiked a bit during cash for clunkers. They were actually in negative territory last month..
To me this does not mean much by its self. What I would like to see is comparisons of necessary and often purchased goods food, energy, clothing, medicine ECT. and the average income of working private sector employees. This is the real indicator. Is it really deflation if the price of necessities drops 2% but average take home income drops 3%?
Were those the same people that dismissed anyone as a “doom and gloomer” that warned others about how our economy was nothing more than a ponzi scheme/house of cards during the past several years?
__________________________________
Yah, kind of a group-think, button down, “I sell bonds and this what everyone around me thinks and who are you to think for yourself” sort of crew. Meanwhile they are getting their opinions from the 27th article written by an underpaid ivy league grad 7 years out of school who spent their college years in the school newspaper office . . . and who is very impressed that the person they are interviewing makes 200x what they do. Maybe the reporter even hopes to marry one of the guys they are interviewing.
Other than energy and used car prices there isn’t much going on with price inflation.
_______________________________________
See the link blam included above. Lots more than energy and used cars are increasing in price. Food, medical, education, (practically everything)is undergoing major inflation.
MCF wrote:
To me this does not mean much by its self. What I would like to see is comparisons of necessary and often purchased goods food, energy, clothing, medicine ECT. and the average income of working private sector employees. This is the real indicator. Is it really deflation if the price of necessities drops 2% but average take home income drops 3%?
____________________________________________________________
Awesome measure. I’d like to see that too.
http://02d9656.netsoljsp.com/SarcMark/modules/user/commonfiles/loadhome.do
looks like to designate sarcasm
Call me a Tin Foil Conspiracy Theorist, but I think that a DEFLATIONARY COLLAPSE could be engineered to complete the FLEECING OF THE RUBES.
I smell manipulation in many markets including debt, equities, and precious metals.
For example, what if Obama and his gang of Wall Street cronies with help from the Fed held down precious metals prices until large numbers of conservatives put a significant part of their portfolios into metals. Then they could pull the plug on the too-big-to-fail banks as welll as the markets and allow the entire economy to go into free fall. In the end, the insiders who hoarded cash will go on a buying spree picking up real estate, stocks, companies, etc. while leaving a large percentage of our population bankrupt and more dependent than ever on government handouts.
Their motives always revolve around POWER and MONEY. Ideology is secondary. They have the power; why would they not use it?
I don't trust anyone anymore!
I guess they are a bit hot for the economic times were in, but I wouldn't call them major. Housing is completely flat, and would likely be negative for the year if they used home prices instead of rent.
When was the last time you went grocery shopping?
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.