Energy, food prices lift inflation in August

NBCNEWS.com ^ | 9/13/2012 | Reuters

[Palmetto Patriot]

Producer prices rose by the most in three years in August as the cost of energy surged, a government report showed on Thursday, but underlying inflation pressures were contained.

The Labor Department said its seasonally adjusted producer price index increased 1.7 percent last month, the largest gain since June 2009 and accelerating from July's 0.3 percent rise.

Economists polled by Reuters had expected prices at farms, factories and refineries to rise 1.1 percent last month.

Wholesale prices excluding volatile food and energy costs rose 0.2 percent, slowing from a 0.4 percent increase in July. The rise matched economists' expectations.

Despite the rise in overall wholesale inflation last month, there is likely to be little pass-through to consumers given sluggish job growth and tepid domestic demand.

[P.O.E.]

The rise matched economists' expectations

There's the real news.

[Perdogg]

Unexpected.

[whitedog57]

Why Bernanke only generates inflation and stock market bubbles:

http://confoundedinterest.wordpress.com/2012/09/13/prior-to-fed-announcement-jobless-claims-rise-poor-money-multiplier-and-velocity-hampers-feds-efforts/

[xzins]

0.4 or 1.7, you multiply by 12 to get the annual inflation rate.

0.4 = 4.8% inflation

1.7 = 20.4% inflation

We have been told that inflation is going to hit.

Now, think of that for a moment in terms of Chicago Teachers demanding 5% per year for 3 years (15%).

Their leaders have read the insider report and are actually pointing out another of Obama’s failures: wages are not keeping up with prices.

That is the sinister nature of inflation. Employee wages generally are hurt. Exactly what Obama wants. He wants as many below the poverty line as possible.

These teachers think he’s on their side. bull. He’s on his own side, and he wants them serfs dependent on him.

[blam]

Hyperinflation Is Virtually Assured – John Williams

[ScottfromNJ]

“Wholesale prices excluding volatile food and energy costs rose 0.2 percent”

So just stop eating and using energy and you’ll be fine. Nothing to see here....

[q_an_a]

It's the regulations STupid!! That should be the bumper sticker and the TV ads all across America.

Regulations stopped Gulf, federal land oil drilling - so we have higher gas prices. Federal Regs force ethanol so we have higher food prices - and worse gasoline for our power tools. Regulations hurt coal plants and coal mines so we have fewer workers and higher electric bills. It is the regulations that trickle down their costs to the average working class stiff wanting to get by - pay check to pay check.