PPI raises inflation fears (wholesale inflation up 1.0% in one month)

[papau]

http://money.cnn.com/2005/08/17/news/economy/ppi/index.htm

PPI raises inflation fears
Measure of wholesale prices far above Wall Street's forecasts in July after being unchanged in June.
August 17, 2005: 9:11 AM EDT

NEW YORK (CNN/Money) - Wholesale prices increased sharply in July, according to a government report that showed inflationary pressures far stronger than Wall Street's expectations.

The Producer Price Index rose 1 percent in July after being unchanged in June. Economists surveyed by Briefing.com had forecast only a 0.5 percent rise in the inflation measure.

The so-called core PPI, which strips out often-volatile food and energy prices, increased 0.4 percent, compared with the 0.1 percent decline in June and above the forecasted gain of 0.1 percent. It was the biggest jump in the closely watched core number since a 0.7 percent rise in January.

Energy prices rose 4.4 percent in July, the biggest jump since a 5.7 percent gain in October. But a 0.3 percent decline in food prices helped keep the overall PPI in check. It marked the fourth straight month the PPI has shown a decline in food prices. <snip>

[Demeter]

1. Reaganomics here we come

the days of 21% mortgages, gas lines and stagflation. I can smell the pollution as if it were yesterday....

[OzarkDem]

2. Higher fuel costs are having their effect

Surprising its taken this long, but it appears higher oil and gas prices are starting their inevitable ripple through the economy. Looks as though we're on our way to double digit inflation.

[papau]

3. I agree - I converted my ARM's to fixed last week

It is getting too dangerous to keep a variable rate loan.

[Burried News]

4. "often-volatile" as in what you like to eat.

What remains is what you can eat.
Flour, sugar, rice i.e. staples

Sorry I no longer trust these indicies especially since their are many interested in manipulating them as was commented on during the Social Security debate.

[papau]

5. True - but even "core" was up 0.4% in one month - so getting rid of

the "often-volatile" still leaves a large inflation monster coming soon to your CPI.

:-(

[Burried News]

6. On another thread I related this. I was hot and thirsty. I went shopping

The cheapest drinks I could find were a $3.00 gallon of off brand apple juice from ...China.
And a $3.00 off label bottle of Lemon juice concentrate from ... Argentina
Everything else was $4.00+
Wound up drinking water with some Cranberry juice - our water here as almost everywhere in the East is heavily chlorinated.

I wonder when they will start giving us weekly inflation figures so they don't seem so high.