Wholesale prices post biggest gain in 6 months

[Lone_Star_Dem]

Source: Associated Press

WASHINGTON - Wholesale prices bolted ahead in May at the fastest pace in six months as energy and food costs marched higher.

The Labor Department reported Tuesday that its Producer Price Index, which measures the costs of goods before they reach store shelves, shot up 1.4 percent in May. That was up from a modest 0.2 percent rise in April and marked the biggest increase since November.

However, stripping out energy and food prices, which can swing widely from month to month, the "core" rate of inflation rose 0.2 percent in May, an improvement from the prior month's 0.4 percent increase. That suggested that other prices were fairly well behaved.

The overall inflation rate of 1.4 percent was higher than the 1 percent rise many economists were forecasting. But the increase in core prices matched their expectations.

Read more: http://news.yahoo.com/s/ap/20080617/ap_on_bi_go_ec_fi/economy;_ylt=AmG37AE66nn8VLG50TxJgN6s0NUE

[whistle]

1. No surprise here

[Blackhatjack]

2. Consumer prices at the grocery stores have skyrocketed....

It's unbelieveable how fast the grocery prices are rising.

Just wait until the flooding in Iowa is factored into rising corn and grain prices.

Better eat beef right now because farmers can no longer afford to feed their cattle at these prices. Once the size of available cattle is reduced, the prices will have to jump.

$5/gal gas will put many independent truckers into the red, and take them off the road.

[AndyTiedye]

3. 1.4% for One Month is an Annual Rate of 16.8%

Is it stagflation yet?

[CountAllVotes]

4. has anyone but me noticed the high price of cooking oil?

My god, it is about $6 or $7 for a quart of cheap generic brand cooking oil at Safeway. I did not buy any of it.

Why cooking oil? It that because it has the word "oil" in it? :wtf:

:kick:

[Lone_Star_Dem]

6. That's kind of an interesting story

Vegetable oils price increase is actually related to several different factors.

1) The increased cost of producing vegetables. Due in part to the increased cost of fertilizers and other petrol products used to fuel machinery.

2) The increased cost of refining the vegetables due to the higher cost of energy.

3) The decrease in raw vegetable material due to weather conditions and other factors.

4) Increase in demand from developing countries such as China and India.

5) Export bans and restrictions on vegetable oil products from some countries.

All in all from what I've read on the issue vegetable oil is expected to remain at record highs through 2009.

[ElectricGrid]

7. IT is used to power some eco-vehicles

[Hugin]

5. A moment of PPI on the lips and then a lifetime of CPI on the hips.

Isn't that the expression?

Anyone?