Cost of Gas and Food Rose Sharply Last Month

[kurth]

June 16, 2007
Cost of Gas and Food Rose Sharply Last Month
By JEREMY W. PETERS

Americans felt the pinch of higher gas prices and eroding wages last month, even as an important gauge of inflation drifted lower, government figures showed yesterday.

Over all, the Consumer Price Index rose 0.7 percent in May, the Labor Department reported. The core rate, which excludes food and energy, was up just 0.1 percent, a welcome development that encourages the Federal Reserve to keep interest rates steady.

The news on the core rate, which has been inching steadily downward, cheered investors, who continued a stock rally that started midweek.

But for consumers, the news was hardly reassuring. Prices for staple household purchases like gasoline and food rose to even higher levels last month, effectively causing most Americans to take a pay cut. After taking inflation into account, the average weekly earnings for workers in nonmanagement jobs — some 80 percent of the work force — fell for the second consecutive month in May.

http://www.nytimes.com/2007/06/16/business/16econ.html

[napi21]

1. Yep! And it's not going to slow down until gas prices are controlled!

NOTHING gets to a store without being on a truck! As the fuel prices keep going up, so do the cost of delivering all that merchandise, and although many grocery stores and food manufacturers tried to absorb the increases, it's just gotten out of control.

I wouldn't care so much if I knew the increase was to support the people actually working in the fields and orchards to harvest the products, but it's NOT! The majority of the $$ is going into the pockets of Exxon, Shell etc, and the remainder is going into the pockets of the major mfg's just because they want a piece of the action too!

[Viva_La_Revolution]

3. It's not the price of gas so much as the use of gas...

Trains can haul so much more for so little energy...

[napi21]

5. As far as energy useage goes, you're right, BUT the way trains are

currently opperated, they would only work for non-perishables. The Co. I worked for tried using train transport in an effort to save $$ on shipping. It took 10 days for a shipment to get from Fl. to Pittsburgh, Pa, and you STILL have to take the stuff off the railcar and truck it to the warehouse. Obviously you can't use that slow system to ship produce, dairy, meats, etc.

I don't know anything about how the rail system works or if there could be more efficient ways to operate them, but as they are now, the only food products that make ANY SENSE to ship via rail are canned, shelf stable products, and if I had to guess, they probably do that already.

[Viva_La_Revolution]

6. They used to run better.

The huge wait time is bad even for non-perishables. I used to ship paper and plastic up north for recycling. The plant won't pay for the shipment until they get it, so payment often was delayed by a couple of weeks when we shipped by rail. So we rarely shipped by rail. :(

We need to massively re-work the system, get it back to carrying passengers and freight, nation-wide. Will anyone listen though? :(

[napi21]

7. I think people would listen, but there has to be a good story first.

Personally, I would love to travel via rail, but when I checked to find out how I could get from my home here in North Ga. to Pittsburgh, Pa. you wouldn't believe the round about route I would have had to take! I wasn't even worried about the time, but geesh, going south and west before heading north east was really a bit much!

I think, to get anyone to listen, the railroads have to put a GOOD PLAN together. One that's efficient, timely, and reliable. If that was done, all they'd need to do is have a few try it, and the word would spread quickly. Every business I know of is looking for a way to cut shipping costs and still meet timelines!

[yorkiemommie1]

2. no kidding

we saw a pkg of rice cakes rise from .99 to 1.79 on one week!

[brokensymmetry]

4. This is a mere summer breeze...compared to the coming

force 5 hurricane.

We haven't seen anything yet.

Peak Oil is starting to hit. Because of that, we're
growing corn for ethanol. So corn displaces wheat, and
now wheat is at an eleven year high.

It's all interconnected - peak oil, climate change,
all of it.

If you want to understand what's coming, read
Catton's "Overshoot".

[Horse with no Name]

8. I got called in to work last night at 2:30 am

I stopped to get a Dr. Pepper. It was $1.40 when a couple weeks before it was $1.05.:(

[HCE SuiGeneris]

9. Went grocery shopping last night...

Much more than a spike is occurring -- the deeply discounted "specials" are now more expensive than they were at a "regular" price 3 months ago. We are getting royally screwed here.