Inflation at Wholesale Level at Highest Point in Three Months

[NNN0LHI]

http://ap.tbo.com/ap/breaking/MGB8XG9PM6E.html

WASHINGTON (AP) - Inflation at the wholesale level rose by 0.4 percent last month, the biggest increase in three months, as the price of energy and food products shot upward, the government reported Tuesday.

The increase in the Labor Department's Producer Price Index followed a 0.3 percent increase in January and an actual decline of 0.3 percent in December. It was the biggest jump since a 0.6 percent surge last November.

The price pressures were generally confined to food and energy. Outside of those areas, the so-called core rate of inflation rose a much more moderate 0.1 percent in February, a big improvement from January when core wholesale inflation had jumped by 0.8 percent, the worst showing in six years.

The Federal Reserve on Tuesday pushed the federal funds rate, the interest that banks charge each other, up to 2.75 percent, marking the seventh quarter-point increase since June.

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[Career Prole]

1. But wait! Aren't you supposed to remove the volatile food and fuel

prices as the guvmint does before they tell you "Inflation really isn't so bad after all"?
Personally, food and fuel is about all I can afford so inflation (AFAIC) should ignore the "everything else" instead.

[montanacowboy]

2. The higher the price of gas is

the higher prices for everything...food, transportation, everything..then Alan rotting corpse Greenspan has another excuse to raise interest rates again (7 times so far) and people start to lose their homes.... adjustable mortgage rates go up.....credit card interest goes up, you can't pay the bill

and guess what, you can't declare bankruptcy either

people of Amerikka....you are simply fucked

[teryang]

3. core, smore

These inflation numbers have been cooked since 2000. Everyone in the business knows it. They put out these reports for the braindead.