Posted on 02/18/2010 6:05:11 AM PST by coaltrain
Wholesale prices shot up at double the expected pace in January, propelled higher by big increases in energy costs. The surprisingly large jump was viewed as a temporary blip and not the start of inflation problems, however.
The Labor Department said Thursday that wholesale prices rose 1.4 percent last month, reflecting higher costs for gasoline and other energy products. Private economists had expected a 0.7 percent increase.
Core inflation at the wholesale level, which excludes energy and food, rose 0.3 percent in January, faster than the 0.1 percent increase economists had predicted.
The 1.4 percent January rise in the department's Producer Price Index was the biggest gain since a 1.5 percent increase in November. Wholesale prices had risen 0.4 percent in December.
Over the past 12 months, wholesale prices are up 4.6 percent, the largest 12-month increase since a 5.2 percent rise in the 12 months ending in October 2008.
(Excerpt) Read more at finance.yahoo.com ...
“Unexpected jump”, except to us living in the real world.
Anyone else sick of every piece of bad economic news now being “unexpected” or similar words, when they were previously used to instantly bash the Bush Administration?
I took more than a day to burn Rome. What do they expect? Obama can’t destroy the United States in only a year. Give him alittle more time.
I guess the days of 12% T Bills are not far off.
the only difference is that there will not be any buyers this time around..
Manufacturers and food and energy providers are gearing up to rake in the dough as much as possible before hyperstagflation takes full effect. Watch food prices now till the end of June.....expect a 20% jump.
More old qeezers and some of the younger ones are using manufacture coupons like never before. More than I've ever seen before.
And yet I just read t-bills are up. There is a lot of chatter about shorting t-bills lately, but it seems it will come down to inflation vs deflation in the end. Which one will it be? That seems to be the central question.
My wife asked me, yesterday, if we were putting in a garden this year. Oh, yeah... We're putting in a garden this year!
I'll be canning tomatoes and make sauce hopefully come August!! Beefsteak, Roma, cherry tomatoes plus the Brandywine tomato (heirloom with excellent flavor).
The garden will be 30' X 60' this year too and I hope to fill the freezer again this year.
And 18% mortgages. Obama is succeeding with his plans.
FUBO
Cloward and Priven would be proud!
Looks like FR resident economic gurus have egg on their face. May I say... told you so.
LLS
Look into an inexpensive rainwater recovery system to water your garden. I have four 55 gallon barrels hooked up to recover the rain from the roof of my shop, and I water my garden most of the year with nothing but rainwater. I just added a single barrel system to recover water from the roof of out chicken coop, so we have a steady supply of fresh water for the chooks in their run year round too.
Out here they charge sewer fees as a percentage of the city water you use per the meter. Then they turn around and impute all kinds of local taxes on both. If you can recover rainwater for the garden, it save you significant money immediately, and on several levels...
And that chicken coop...we are allowed five hens in the city limits, and when they mature they should produce at least three eggs a day between the five of them. Chicken scratch is cheap, and if you can range them in your yard it costs very little to keep them fed...
I just put up a small Snap Lock green house ($699 Home Depot). It has rain gutters with a connection at each corner to connect flexible hose for rain water collection.
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