Wholesale inflation declines in U.S. while industrial production rebounds

[Purveyor]

Source: Associated Press

WASHINGTON: Wholesale inflation posted a better-than-expected reading in June as both food and energy costs in the United States retreated while industrial production staged a strong rebound.

The U.S. Labor Department said its Producer Price Index fell by 0.2 percent last month, the first decline since a 0.6 percent dip in January. Since that time, wholesale prices had been recording big gains, reflecting the fact that gasoline surged to record levels and food costs have been rising because of heavy demand for corn to use in ethanol.

But in June, food prices dropped by 0.8 percent and energy prices were down 1.1 percent.

Core inflation, which excludes volatile food and energy, rose by a higher than expected 0.3 percent in June although most of that increase reflected a jump in car prices. Without the increase in cars and light trucks, core inflation would have posted a much more moderate 0.1 percent rise.



Read more: http://www.iht.com/articles/ap/2007/07/17/business/NA-FIN-US-Economy.php

[wakeme2008]

1. cook those books

:grr:

[saigon68]

9. COOKING UP A STORM

Look at the value of the Canadian dollar vs US

Now .96 US

was

.63 4 years ago

http://ichart.finance.yahoo.com/5y?cadusd=x

[snappyturtle]

2. Really? I don't believe it. n/t

[eShirl]

3. food prices DROPPED??!!

in a pig's butt pimple

[ProudDad]

21. Wholesale food prices

That means more profits for the fat fucks at the top...

We pay the same or more...

[ooglymoogly]

4. Yuh...fer sher...

anybody who has set foot into a grocery store or is one of the millions who have lost a job to outsourcing or the moving of manufacturing jobs to cheaper climes knows this is sheer cooked book propaganda.

[roamer65]

5. I don't want what Bernanke is smoking.

Hey Bennie,
Then why are you growing M3 money supply at 13 plus percent right now?

http://www.shadowstats.com/cgi-bin/sgs/data

Having to debt monetize all that Treasury paper that the Chinese are dumping?

[olddad56]

13. Bernanke didn't put out these numbers, the US government did...

You can always believe the Bush administration.

[roamer65]

14. Bernanke is a * appointee.

He carries water for them. They're all criminals.;-)

[brentspeak]

6. Question about "industrial production":

Are these figures of industrial production taken only from manufacturing which occurs within the United States? If an American company's products are manufactured outside of the United States - say, in China or Mexico -- then that information should not be included in the category of reported domestic industrial production.

[JCMach1]

10. Factories should, in fact, should be BOOMING due to the low dollar

a modest rise should shock no one

[olddad56]

17. it is all smoke and mirrors anyway.

[ryanmuegge]

7. Yeah, for one month.

I'm tired of this fucking "global" economy. Everything's measured down to the millisecond and there is no stability.

Just look at the stock market: up one day, down the next. Currencies perform well against others one day and poorly the next. No one can ever be comfortable or at peace.

[Cobalt Violet]

8. I'd hate to see prices of things if wholesale inflation went up.

:eyes:

[xultar]

11. Liars.

[4dsc]

12. Everything I buy has gone up!!

This is the biggest bullshit story I have seen anywhere lately..

[TexasLawyer]

15. the fed doesn't want to raise interest rates

'cause that's going to screw up the housing market even more than it's already screwed up.

[billyoc]

16. Industrial production

of cheeseburgers and fajitas.

[PSPS]

18. It's always "without the increase in (whatever went up), the rate was up only x%"

[robcon]

19. Good news... and my 401k appreciates the Dow 14,000, too

n/t

[tom_paine]

23. If it was true, it would be (not the Dow, obviously)

Unfortunately, government numbers under the Busheviks have been almost universally altered to be further and further from reality.

I believe that report as much as I would a Commie Soviet 1978 Agriculture Report.

Sad that it has come to that, but it is what it is.

As to the Dow, I will credit Reaganism and it's ugly descendent BushPutinism, for so thoroughly disconnecting the stock market from the fortunes of the economy as it relates in any meaningful way to the 97% of us making <$100K/year.

[Odin2005]

20. The inflation numbers are manipulated and massaged to look good when they aren't

The real inflation rate is somewhere around 8% in my experience, with most of the increases being in good that are "conveniently" left out of the inflation calculation as "too volatile." It also doesn't help that most right-wing economists that spew this BS are followers of the "Austrian School" of economics (the "government intervention destabilizes the economy" morons like Hayek and Von Mises) and so dogmatically insist that "real inflation" only comes from increasing the money supply, inflation caused by fuel costs isn't "real" inflation to them.

[tom_paine]

22. This reads like a Soviet Union report, circa 1978

What we need is some glasnost.