SEPTEMBER PPI SURGES 0.8%, WAY HOTTER THAN ESTIMATES

TBI ^ | 10-18-2011 | Joe Weisenthal

[blam]

The number is out, and it's HOT!

PPI hs jumped 0.8%, well above the 0.2% analysts had expected.

Core PPI, which excludes food and energy, was only up 0.2%, which is still above the 0.1% that analysts had expected.

The culprit? Blame food and energy.

[blam]

FYI:

[Mr. K]

If you have been waiting to stock up on food and supplies, now is the time

And I do mean TODAY

[arthurus]

Food and Energy are NOT to blame for the increase in inflation. much, perhaps most, of the rising costs of food and energy are manifestations of inflation. Were there no inflation the rising cost of F&E would cause the prices of other goods and services to decline. That has not happened.With a "core" inflation rate of .2% and F&E of .8% the actual inflation rate both of those rates combined in proper ration. The real inflation rate is purely the increase in the money supply. Insofar as that additional money is kept idle in banks it does not add to the increase in prices but it is nevertheless part of inflation. When the money enters commerce then the aggregate price level will increase at the rate excess money enters commerce added to the new money that is already in commerce and driving those .2 and .8 %s. When that happens then we will get a very rapid ramp up of the prices of almost everything.

[Reagan69]

Is a high PPI bad?

Is it an indicator of inflation?

[blam]

"Food and Energy are NOT to blame for the increase in inflation. much, perhaps most, of the rising costs of food and energy are manifestations of inflation.

So...why did gold go down in price? I expected exactly the opposite.

[blam]

"And I do mean TODAY "

Why today?

[traderrob6]

So as long as we don’t eat, heat our homes or go anywhere everthings terrific.

[Starboard]

Thanks for the timely post. The corrupt MSM will bury this inflation story.

[Tribune7]

The culprit?

[JDW11235]

That about sums it up.

[bert]

Amen

Inflation lags the key indicator .... Gold

The inflation is not limited to the USA

[MinuteGal]

FYI....Betcha don't know PPI means "Producer Price Index" and betcha you were embarrassed to ask.

If you don't live in Acronym World around here you're SOL.

ROFLMAONBCCBSABCCNNMSNBCBTWIIRCFUBOIBTZ

Leni

[Free Vulcan]

More information:

http://www.marketwatch.com/story/us-wholesale-prices-surge-in-september-2011-10-18

[blam]

"FYI....Betcha don't know PPI means "Producer Price Index" and betcha you were embarrassed to ask."

Please, please, tell us more. Can you tell us what are GDP, DJIA and YAD?

[johniegrad]

I agree with her. Spell it out once and then use the acronyms. It doesn’t matter if you understand it, it matters if everyone (including the newbies) has a chance to understand it.

[WesG]

OK, smartypants. Tell me what YAK and WHIP are... ٩(●̮̮̃•)۶

[MichaelCorleone]

I thought that number was pretty significant as well, but I would have thought the PM markets would have been bid higher immediately.

The markets always seem to find a way to confound.

[Grampa Dave]

The left wingers in control of the Mediots/the Outhouse and the $inate will deny there is inflation.

However, the government's own TIP bonds which protect investors against inflation show otherwise.

Below is a chart of the etf IPE which is an ETF based on TIPS versus the S&P and DOW.

Beside the increase in value for IPE, this ETF has produced good dividends the past year plus.

[blam]

The 10 Worst Hyper-Inflation Horror-Stories Of The Past Century

[Grampa Dave]

“So as long as we don’t eat, heat our homes or go anywhere everthings terrific.”

You left out: Use electricity, use water, educate a child, buy clothes, buy OTC health products and ______________ (fill in the blank).