Skip to comments.Sept. PPI up 1.9% (0.3% ex food, energy)
Posted on 10/18/2005 5:42:03 AM PDT by Rutles4Ever
Sept. PPI up 1.9% (0.3% ex food, energy) Year-over-Year up 6.9% (biggest hike since 1990)
But of course very few especially the MSM ever blame the enviorwhackos for blocking new oil drilling and the building of new refineries.
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 and nearly double the rate seen in June.
Core prices, which exclude food and energy, increased 0.3% as prices for capital goods increased 0.3%. Car prices increased 0.9% and truck prices climbed 1%.
The core rate is up 2.6% in the past year, down from 2.8% in August.
The PPI data come days after the Labor Department said consumer prices increased 1.2% in September on higher energy prices, which peaked in September after two devastating hurricanes disrupted much of the oil and gas production and distribution in the Gulf Coast region.
Prices for crude oil and gasoline have since retreated, but natural gas prices have remained high.
The PPI and CPI data are likely to keep the Federal Reserve on track to raise short-term interest rates at the Nov. 1 meeting and in December as well. Fed officials have said they'll have to raise rates to battle inflation, trusting that economic growth will reaccelerate next year.
Price pressures were mounting further back in the production pipeline as well. The hurricanes cut production of chemicals and lumber products and disrupted transportation for all kinds of heavy goods such as steel.
The storms also boosted demand for building materials.
Prices of intermediate goods destined for further production before final sale increased 2.5% in September, the biggest increase since August 1974.
Core intermediate goods prices increased 1.2% as building materials, chemicals and metals jumped in price. It's the largest gain the core intermediate PPI in 25 years. The year-over-year increase in the core intermediate rose to 3.5% in September from 3.2% in August.
Price of crude goods rose 10.2% in September, including a 16.9% rise in energy materials. Natural gas prices jumped 30.7%. Basic industrial materials prices rose 5.3%, with iron and steel scrap prices rising 22.8%
The BOTTOM line - borrowing money will get more expensive and the housing market/bubble takes another two hits.
The difference today between headline and core again underlines that no matter how you slice it the punters are paying more but wage inflation (which is linked to core we repeatedly hear) means they aren't going to be keeping up. Wages low / prices high / interest rates dividends low (as set by core) is a nightmare scenario for the punters.
Good grief. I got two dozen eggs last week for $1. If they get any cheaper, they'll be giving them away!
Great, another US recession led by a President Bush! GREAT!
1.9 translates to a 22.8 if not checked.
In the Carter era interest rates on every conceivable loan went through the roof.
It seemed like prices changed weekly as you went to the grocery store.
I expect the Fed will jump on this with both feet.
What are you griping about? If you stay at home, starve, and freeze, you will hardly notice inflation.
We just lowered our egg prices 10¢ last week per dozen company wide because our supplier (major east coast supplier) lowered our cost a few cents. We sell from 1.09 to 1.49 for a dozen. It's been in that range for the better part of 3 years.
Amazing......up here in Connecticut....we pay $2.50 a dozen for extra large.
"But of course very few especially the MSM ever blame the enviorwhackos for blocking new oil drilling and the building of new refineries."
Where were you two weeks ago when there were papers and notes (and threads here on FR) that clearly pointed the finger on the oil companies themselves for restricting the construction of new refineries. It was proven to be a self imposed restriction and has had it's desired effect of raising profits.
While I am not friend of the enviro nazis....they are not to blame, they have been used as usefull idiots. Please do a bit of research on this and get your facts straight.
Only eggs we have in that price range (2.49-3.49) are organic eggs.
I believe all eggs are organic......
unless they come out of a robot's ass!
Free range chickens eat lots of insects and worms.
My grandfather and father both kept chickens until the day they died.
I loved throwing in a large worm and watching them scramble for the delicacy.