Posted on 03/16/2012 8:57:33 AM PDT by tobyhill
U.S. consumer prices rose by the most in 10 months in February as the cost of gasoline spiked, a government report showed on Friday, but there was little sign that underlying inflation pressures were building up.
The Labor Department said its Consumer Price Index increased 0.4 percent after advancing 0.2 percent in January. That was in line with economists' expectations. Gasoline accounted for more than 80 percent of the rise in consumer prices last month, the department said.
(Excerpt) Read more at chicagotribune.com ...
0.2% + 0.4% x 11 = 4.6%, round to 5%
How do you get to 6%? Or are you expecting prices to climb even faster?
Clearly they need to remove food and gas from the calculation, like they did the price of homes in the early part of the century. :-)
Major newspapers are running the ‘high price of gasoline’ story - they don’t run stories that hurt Obama. I’m betting a few months before the election, the price is down - Credit given to Obama.
Don’t ignore the industrial production report. Obama is the first President since Carter not to reach 80% capacity utilization. From Zero Hedge:
They can “remove” those from their calculation,
but they can’t remove increased prices at the store shelves.
I thought food and fuels were left out of the CPI, or are they trying to blame other inflation on the oil companies again? (Oil companies have to pay those inflated prices, too.)
There’s very little we buy in this country that didn’t arrive by truck (diesel),
and those prices are going to be up.
Exactly. People see the prices and even despite the Government claims, we know it’s well over 10% higher for gas and food just this last month.
Everything is going so well.
“...but they can’t remove increased prices at the store shelves.”
Actually, they can and they do. The name for it escapes me, but the methodology goes as follows: if the price of (ex) beef goes up 1%, it’s assumed the consumer put the beef back and purchased the chicken, which rose 0.25%.
Voila! Inflation under control.
This is an undercover tape - one of the men you’ll hear is connected to the New York Times...
After watching 30 seconds you’ll know they would never run anything that would hurt Obama...
http://www.youtube.com/watch?v=qBFOmUXR080
The happy news here is that the costs of food and fuel are not counted when the rate of inflation is calculated by the federal government. Therefore the increase in the price of gasoline is not causing the rate of inflation to increase.
Aren’t you glad of knowing that?
How can this be? I thought the government doesn’t count food and energy?
But then the stores would have to lower the price of the beef to move it before it spoils and just to try and recoup some of their expenses.
Some of the cost increase is supply and demand but a majority of all increases is transportation cost.
The only way the inflation rate is this low is if buggy whips, chicken lips, dromedary nose rings, and New Coke are the majority of products monitored.
As our government refuses to give us REAL numbers so they can play their games with COLA increases, we need a source of a real everyday/month/year shopping basket.
Any suggestions as to where/how that data could be obtained and force fed to the Cosmetically Enhanced Readers on the nightly news?
How often do you buy a home, and even if you buy one a day, why should I care? (With regard to inflation).
Can’t eat a washer and dryer.
Uh, no . . . that’s not how it works. Unless all you read are blogs that try to sell you gold.
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