(AP) Wholesale inflation (up 5.4%/2005), retail sales climb

[rodeodance]

http://www.businessweek.com/ap/financialnews/D8F3QSS8G.htm?campaign_id=apn_home_down&chan=db
Wholesale inflation, retail sales climb

The Associated Press/WASHINGTON
By MARTIN CRUTSINGER
AP Economics Writer

JAN. 13 8:43 A.M. ET Soaring gasoline costs pushed inflation at the wholesale level up sharply in December, ending a year in which wholesale inflation rose at the fastest pace since 1990.

The Labor Department reported that its Producer Price Index, which measures price pressures before they reach the consumer, rose 0.9 percent in December, the biggest increase since a 1.7 percent jump in September. The culprit in both months was a big surge in gasoline costs, which spiked above $3 per gallon in early September, reflecting lost Gulf Coast production following Hurricane Katrina.
For all of 2005, wholesale prices rose by 5.4 percent. That was the biggest increase since a 5.7 percent increase in 1990, and another year in which surging oil costs pushed inflation higher. However, core inflation, excluding energy and food, was up a more moderate 1.7 percent in 2005, including a tiny 0.1 percent increase in December.

[NorthernSpy]

1. "core inflation, excluding energy and food"

Also excluding housing and healthcare, I reckon.

Just what else do these bonehead economists think that working class people spend their paychecks on?

:eyes:

[Zenlitened]

2. Love their use of the word "climb" :(

"Hovered" might convey the story a bit better.

...Separately, U.S. retail sales increased by a seasonally adjusted 0.7% after rising an upwardly revised 0.8% in November, the Commerce Department said Friday. Sales were originally seen 0.3% higher during November.

Auto and parts demand rose last month by 2.6% after climbing 5.7% in November. October sales fell 1.8%. Excluding autos, all other retail sales increased by 0.2% in December. Economists expected sales outside the car sector to be up 0.4%. Sales excluding autos fell 0.4% in November.

Gasoline-station sales rose 0.9% last month after plunging 6.1% in November. Sales year over year were 17.9% higher at the end of December. Stripping away sales at filling stations, demand at all other retailers increased last month by 0.7%. Excluding autos and gasoline, all other retail sales rose 0.1%.

Sales rose 0.3% at health and personal care stores; 0.4% at food and beverage stores; 0.5% at restaurants and bars; 0.5% at mail order and Internet retailers; and 1.5% at sporting goods, hobby and book stores. Sales fell 0.1% at electronics and appliance stores; 0.3% at general merchandise stores; 0.6% at building material and garden stores; and 0.1% at furniture stores. Demand was flat at clothing stores...

Full story:
http://online.wsj.com/article/SB113715802966945966.html?mod=home_whats_news_us

[MGKrebs]

3. There is just something very very wrong with this.

Virtually everything we sell (wholesale)has gone up from 4 to 8% in the past year. Anything that is mainly steel or plastic (which is almost everything!) has risen the most. Add in the fuel surcharges from FedEx and UPS and the increases are higher. Virtually all suppliers we talk to say the same thing, and our customers say their other vendors are saying the same thing.

I don't know how inflation could not be 5% or more unless retailers are eating the increase, which I doubt.

edited for speeling :crazy:

[cliss]

4. All the numbers are "fixed"

I've tried to keep track of these indexes and other measurements that the government puts out. About 4 years ago, I started noticing some really strange things.

The numbers started changing. Sometimes they would contradict each other. Sometimes they would be lower. Seldom higher, though.

I think it's caused by a) a policy to always underestimate the "bad" stuff and b) incompetence. We don't have leaders anymore. We have sycophants. The work product goes down in situations like that.