I love Naturals and Acid Cigars (kuba kuba, and Acid One), from Drew Estate, and buy a host of other samplers, etc. If you are a cigar smoker, or gift a lot, look at their deals...
Posted on 06/14/2008 4:43:53 AM PDT by raybbr
Inflation soars 0.6 percent in May, reflecting biggest jump in gasoline costs since November
WASHINGTON (AP) -- Soaring energy costs pushed inflation up in May at the fastest pace in six months. Food costs kept rising, too, and all signs are pointing to more bad news on gasoline, oil and food in the months ahead.
Costs for clothing and prescription drugs did drop last month, but consumer prices rose by 0.6 percent in all, the biggest one-month increase since November, the Labor Department reported Friday.
Food prices, which had taken the biggest one-month leap in 18 years in April, rose by a more moderate 0.3 percent in May, but that still left food costs rising at a 6.3 percent rate so far year, well above last year's increase. People are paying 10.2 percent more for milk than a year ago.
Consumers are getting hammered by a relentless surge in energy costs, pushing gasoline above $4 per gallon. The rising food prices partly reflect higher costs for transporting products to grocery stores.
Core inflation, which excludes energy and food, edged up 0.2 percent in May, an increase that was in line with expectations and helped to ease worries in financial markets that the Federal Reserve was inching closer to starting to raise interest rates to combat inflation pressures.
Clothing costs fell by 0.3 percent and the cost of prescription drugs dropped by 0.7 percent, but airline tickets jumped 3.2 percent, the biggest gain in more than six years, again reflecting the surge in fuel costs.
On Wall Street, stocks ended a turbulent week with a big gain, reflecting investor relief that at least the core inflation reading remained well-behaved. The Dow Jones industrial average rose 165.77 points to close at 12,307.35 on Friday.
Private economists cautioned that there would probably be more bad news on inflation in the months ahead given that this year's oil shock has gone on much longer than expected.
"Businesses that had been patiently waiting for oil prices to fall have run out of patience. We expect more of them to start throwing in the towel and raising prices," said Kenneth Beauchemin, an economist at Global Insight, noting the announcement by Dow Chemical Co. late last month that it was raising prices by up to 20 percent.
These developments have raised alarm bells at the Federal Reserve, which is now indicating that its biggest concern has changed from worries about a possible recession to fears about higher inflation.
In a speech Monday, Fed Chairman Ben Bernanke said the Fed will "strongly resist an erosion of longer-term inflation expectations," comments that raised concerns in financial markets about interest rate hikes.
Many economists, however, still believe that the weak economy and rising unemployment will keep the central bank from actually raising rates until later this year.
"Fed members are now focused on the potential that inflation expectations are rising which indeed would be a truly worrisome event," said Joel Naroff, chief economist at Naroff Economic Advisors. "Thus, we will likely see continued speeches telling everyone how the Fed is on guard against any potential inflationary issue."
But Naroff said he believed there would be an extended period when the Fed will be "jawboning" against inflation.
So far this year, consumer prices are rising at an annual rate of 4 percent, compared with a 4.1 percent increase for all of 2007.
Core inflation, excluding energy and food, is rising at an annual rate of 2 percent so far this year, down from an increase of 2.4 percent for all of last year. However, many economists said they expect core inflation to begin rising as the prolonged rise in energy costs starts shows up in other areas.
The energy increases have pushed the nationwide average for gasoline up to a record of $4.06 and private economists believe that price will keep climbing through the summer driving season.
The combination of rising inflation and weak wage gains contributed to another drop in weekly earnings. After adjusting for inflation, weekly earnings for nonsupervisory workers were down 1.2 percent in May, compared to a year ago, the Labor Department said in a separate report. It marked the eighth straight month in which weekly earnings had fallen compared to a year earlier.
The increase in energy prices was led by a 5.7 percent jump in gasoline, the biggest one-month rise since last November, and gains of 0.9 percent for electricity, 10.4 percent for home heating oil and 5.6 percent for natural gas.
The 0.3 percent rise in food costs reflected a 1.5 percent jump in beef costs, the biggest in 13 months, and another steep increase in cereal and bakery products, which were up 1.6 percent.
Or, even better, to remind us that inedible tv's are cheaper along with inedible computers.
Fail troll is fail. (Learned that from a 12-year-old).
(OK, so I'm a cheap imitation.)
Energy, housing, and food are much too volitile to count -- the measure that counts is the one that measures the price of cell phones and ipods. We're doing great inflation-wise. Don't listen to the gloomers.
And you hit why things are far better today than ever before: "tv's are cheaper" -- why I remember the dreary 1950s TVs cost a fortune.
Any takers?
REAL inflation, the things people have to buy to live, is about 5-7% a year. Apple cores are a modest 2%.
Really? Because the chuck steak I buy went from $3.60 to $4 this month.
Oh, I forgot. I'm supposed to constantly substitute quality downward for their formula to work.
But wait, the Fed has been saying there is no inflation.
I’ve substituted pork and chicken for beef, with no measurable decrease in quality, and no measurable increase in my dollar cost.
Chicken is up almost 40% too. Keep trying.
U, Mr. Ego, I am talking about the chicken I buy. I know that you reference the world from your bedroom computer but I don't.
Round steak was $3.99, in the next bin!
I am also buying a Black Angus cow, which will stay on a friends farm... You can buy a calf for around $100-150. After a year, or so, I will have good beef, my dog, Spot, will have plenty of bones (smoke them!), and I will save a thousand or so!
Beef. It's what's for dinner!
-------
As to the subject of the post, real inflation is probably 20-25% for many folk. The farmer's have to spend $4 for tractor diesel, $4.80 for their diesel pickups, and all of us have to pay for those higher fuel prices. I am now spending almost $800 per month on gas. I have to drive a lot, and I have to pay! I'm fortunate that I can afford it (but it will surely hurt my inheritors!).
One local store owner told me that all of his suppliers now add $6-12 service charge, for formerly FREE deliveries. It gets passed right down the ladder... and guess who's on the bottom rung?
Thanks for proving my point. Drumsticks used to go for about $1.29 to $1.49/lb a year ago.
The chicken breasts I used to get for $2.49 to $2.79 now average $3.59. Sometimes they are on sale but the higher prices are here.
BTW, I do all the food shopping for my family so I DO know the prices. That's how I know that you don't have a clue.
You might be substituting with wild pigeon later this year. Midwestern weather has been dreadful for farmers and crop prices.
I bought my father a porterhouse for $5.49/pound (let’s call it USDA Select) on sale yesterday as well, that I will grill for him tomorrow. The cigar I bought him was more expensive.
Pasta here I come! (Yes, I know pasta prices are up).
Laugh all you want. I live in rural (as if there is anything else) WV. My cabin looks at the foot of a mountain, and sits next to a stocked trout stream. I watch the deer wandering in my yard every day and night. Turkey, grouse, and other good eats are bountiful...
Winchester 30/30 and Remington 1100 are part of my "culinary arts"...
Let’s see, at 10 pounds of chicken a week, your food bill just went up $5.00.
Which, incidentally, is what I meant by “and no measurable increase in my dollar cost.” I don’t consume 10 pounds of chicken a week, and I spent $5.25 for a beer yesterday.
First, thanks for confirming the rise in prices. Second, I hope you don't use math for a living. Or, maybe you are in charge of the books of a company that's "losing" money? (In other words your math is really bad!)
I love Naturals and Acid Cigars (kuba kuba, and Acid One), from Drew Estate, and buy a host of other samplers, etc. If you are a cigar smoker, or gift a lot, look at their deals...
Disclaimer: Acid Cigars are completely legal TOBACCO products! Their “hook” is their use of aromatics in the curing process, and proper aging and blending...
But you can call it 40% if you wish because it sounds worse. Maybe you can find an article that adds, "price jump worst since 1994," or even "women and children hardest hit." Whatever emotes your boat.
I would really like to know what you do for a living? It certainly can't involve rational thinking and the ability to observe and extrapolate.
Chicken is just ONE thing I buy to feed my family. Yes. Extra for chicken is just a part of the equation. Once again, you can't see outside of your blinders.
Cigars qualify as discretionary purchases to me. In other words, I have more important things to spend money on. Like beer.
Going up to Canada to fish later this summer. I figure it is going to cost about $100 per walleye I eat..
You observed that chicken prices are up 40%. That I cannot confirm until I find my next batch at $1.49. Rationally, I'd like to see you "extrapolate." Chicken prices are allegedly up 40%, therefore everything else is up the same or more? Is that how your mind works?
And no, you may not ask what I do for a living, unless you are single, female, attractive, and available.
Quiz:
1. $4+/gal gasoline lends itself to (a) feeling comfortable or (b) feeling crunched.
2. Double-digit percentage grocery price increases lends themselves to (a) feeling comfortable or (b) feeling crunched.
3. Significantly increased utility bills (electric, heating) lend themselves to (a) feeling comfortable or (b) feeling crunched.
Tally:
If you chose (a) for 1, 2 or 3, you are a clueless big-business country-club Republican who spends more time on the golf course than in the grocery store.
I'd have to take your side. If your able to shop around prices aren't that bad, yet. If an item isn't really on sale, I don't buy it..
If you catch more fish, the "price per" goes down! I guess you should spend some extra time "researching" while you're there! Hope you're as happy as this guy...
Price per catch is about 50 cents.
Today's chickens (and most fowl) have little taste any more, just mass. Which accounts for the fact that chicken recipes today utilize every herb, spice, sauce and enhanced breading to make up for the blah flavor of the bird itself.
Bring back the days of ground-scratching, worm-eating, barnyard-raised fowl. I've been to reunions in farmland Indiana. Most food on the groaning tables under the trees next to the farmhouse is home-grown, including meat and chicken.
Oh, the taste of the various chicken dishes, oh, the humanity, oh, the waist line.
Leni
People have to start looking at the flyers in the paper and shopping wisely. It's as simple as that. The days of going to the store and just choosing stuff at random are over.
Yeah, but how much did that fish cost in beer? The guy’s wearing waders, I know, but that’s at least a case right there.
I can get a whole chicken (prepared, cooked) for $4.99 at one of those “deli”-type places. Their price hasn’t gone up (yet). No flavor whatsover, except for the seasoning on the skin . . . but good for two meals when I don’t feel like cooking.
We have regional big box store called Meijer right across the steet from Walmart. Competition is a wonderful. Those 2 stores also keep prices in check at higher scale stores..
If you’re going to have a steer, let me offer you a friendly bit of advice: Buy a freezer. A big one. If you already have one, you’ll need another. People are always surprised at how much room it takes to freeze a butchered steer.
I used to shop at Meijer almost exclusively when I lived in Michigan, and would drive past Kroger to do it.
I custom built my "cabin". It has steel roll-ups for all openings, and every system has backup, gas and 12/24 v DC systems.. I built a walk-in freezer, and have a "cold storage" as well. I have a pantry that would be good for a small hotel.
I'm not a "survivalist", just being a good Boy Scout! In the next few years, I feel some things may happen just east of me, and lots of "dependent" types will be marauding since food stamps become worthless. See previous post #19 for parts of my "culinary arts".
I have done the steer thing before, and love hamburger! I don't eat a lot, so part of it will become jerky.
I also buy whole pigs. One of my S-I-L's has pig parlors (NC) and we love NC BBQ and host our own "pig pickins"!
I buy pork steaks for .99 cents a lb and they are meaty with little fat.
Ground chuck is $1.49 a pound. I buy in large quantities and do my own wrapping for the freezer.
I also put 3-5 deer in the freezer every fall.
Meat is rather cheap in my area of southern MI, but fruit and fresh veggies are off the charts in price. ( $2.25 a lb for tasteless bland tomatoes!)
I haven’t seen 99 cents for pork in a while, and I don’t shop for chicken often at all. It’s not a really good weekend to check prices, because all the stores are pushing their Father’s Day specials . . . here in NW suburban Chicago the powers-that-be have clearly decided fathers want beef and ribs. :)
Nice, but what kind of internet connection do you have? ;)
Choice is dial or Sat. I use dial up at the cabin, since I am on the road much! But, if I go down, everybody else is down, as well! But...it is ssslllooooowwwww!
Everything is in 10# + packages but its worth re wrapping for the savings. The country style ribs are also .99 #.
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