U.S. Sept. PPI up 1.9%, most in 31 years

[UpInArms]

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38643.354268044-846490198&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - U.S. wholesale prices rose 1.9% in September, the biggest jump in 31 years, the Labor Department said Tuesday. Price increases were led by a 7.1% rise in wholesale energy prices, the biggest jump in 15 years. Food prices also soared, rising 1.4% on a record 49% increase in egg prices. The producer price index for finished goods has increased 6.9% in the past 12 months, the fastest rise in prices in 15 years. Core prices, which exclude food and energy, increased 0.3% as prices for capital goods increased 0.3%. The core rate is up 2.6% in the past year, down from 2.8% in August.

...short blurb...

[marmar]

1. Yet incomes aren't rising....

It's a train wreck waiting to happen.

[rodeodance]

2. this is the "recession" that Greenspan said would not be a recession the

the day.

[CountAllVotes]

5. no its called "stagflation"

Inflation plus a stagnant job market going nowhere = stagflation.

ugh.

:kick:

[trogdor]

7. Usually, inflation stimulates the economy.

And therefore the job market. When that doesn't happen, you are in trouble, because tightening the money supply results in the sort of nasty recession we had in 1981-2 where everything just sort of crashes all at once. As long as the Chimp continues to print more money to spend, you get to stay at about 5.3% unemployment or whatever it is.

The better solution is to stop spending money we don't have, while making the rich pay for bringing the budget into balance.

[Divernan]

3. And COLA formulas could be "modified" to exclude energy costs.

The Cost of Living Adjustment formulas used for annual increases in Social Security payments, Railroad Retirement payments, across the board salary increases in some companies, etc. should reflect this boost in energy prices. But this is a prime area for the Bush maladministration to govern by regulation, and simply change what economic factors are considered in determining the percentage of increase of a COLA. Anyone have the current formula for COLAs for social security?

[ugarte]

4. Based on the price of our weekly groceries

I'd say inflation is actually running at about 20% per annum.

[AX10]

6. 2006-07 recession is a reality.

[The_Casual_Observer]

8. But the "experts" claimed that oil prices would have NO effect on our

great economy, as it "bips along" on "all four cylinders".

[struggle4progress]

9. Misery index time. eom

[lovuian]

10. Inflation is roaring back!!! Wheres Greenspin???

another guy leaving a trail of disaster!!!