Skip to comments.U.S. consumer prices rise 0.4% in January
Posted on 02/17/2011 6:06:18 AM PST by Free Vulcan
WASHINGTON (MarketWatch) The prices that American consumers pay for goods and services rose a seasonally adjusted 0.4% in January, mainly because of higher gas and grocery expenses, according to the latest government data.
More than two-thirds of the increase in consumer prices last month stemmed from food and energy, the Labor Department reported Thursday.
Yet core consumer prices rose a lesser 0.2%. The core data strips out volatile food and energy costs that can make overall inflationary pressure in the economy to seem higher or lower than it actually is.
Economists surveyed by MarketWatch had forecast the consumer price index to rise 0.3% overall, with a 0.1% increase in the core rate.
Consumer prices fell sharply in 2010, and over the last 12 months they are up just 1.6% despite recent increases in food and energy costs.
(Excerpt) Read more at marketwatch.com ...
As long as you do not include food and energy - you can come up with any number.
Food and energy have gone up huge.
Anyone believe this, the unemployment numbers or any other damn thing this gub mint tells us is a fool.
I was if you figured inflation the same way as they did back in the Carter era it would be running at 10% and I believe it.
Most of my funds go to purchasing food and energy. Not much is left to spend on energy left.
Yes, as long as the gov excludes those goods that have risen in price over the last year, some as much as 70%, there is little, or no, inflation.
Oh, beef byproducts!!! Walmart raised prices on basic grocery items by 5 to 10%. Gasoline is anywhere from 3.05 to 3.15. Their “marketbasket” is skewed by items a typical family CANNOT AFFORD. Less than 1/2 percent is bull$hirt.
I know it’s not common for people to read past the headline, but they should at least glance at the first sentence.
We saw this bed sheet set at Target the other day listed as 89.99. When we got it, it rang up as 99.99.
They gave it to us for 89 but apparently were in the process of raising prices on some items.
That is not a small price increase. That’s huge....$10!!! Now I don’t know if this is a common thing or if it’s just a few items that were cheaper for some reason, but if the former we have some real inflation issues just bubbling up.
Paid almost $4 for a freaking carton of cherry tomatoes yesterday. That was a shocking price. It seems everything has gone up about .50 or more.
All well and good but has “Anybody gone into Whole Foods lately and see what they charge for arugula?”—Barack Insane Obunghole
Yep, inflation sure is under control except for three things: food, clothing, and shelter. Just learn to do without those and you’ll be fine. Yet another wonderful facet of Obamanation.
And the third sentence...
Produce is a special issue right now, especially tomatoes. We get a lot of ours from Mexico, and the massive global warming we had that caused it to snow in Dallas and Houston also caused widespread hard freezes and total crop failures south of the border. Certain produce items like tomatoes are going to skyrocket in price for the next few months because the supply has been severely reduced.
That having been said, these numbers are bullcrap. Food has been moving steadily upward for months—and if the prices aren’t going up, the sizes are going down. Anybody who actually goes to a supermarket can clearly see it. We’ve been noticing it for over a year now. Anything involving grain is getting more expensive as more land is switched over to growing corn for ethanol, thank you Al Gore.
Tomato prices are up because of the freeze in Florida and Mexico. (Simply pointing out that not all price increases are due to inflation). They’ll come down again next harvest.
“The core data strips out volatile food and energy costs that can make overall inflationary pressure in the economy to seem higher or lower than it actually is. “
Don’t worry folks, it only “seems” like you are paying more for stuff.
You’ve got that right. 0.4% per month, means 4.8% for the year. It’s probably double that, maybe more. I noted this week my favorite ice cream, Turkey Hill is now $3.00 per container, when on special. As little as 3 years ago, it was $2.50 per container, and the containers were 56 oz, as compared to the 48 oz you get now.
Doing some math, I figure that’s about a rate of 13% inflation per year. I know my revenues have not gone up 13% per year.
Read an article this week that said clothing prices would be increasing by 10% this spring. I presume it's due to the increase in cotton prices, which would also impact bed sheet prices, I'd suspect.
The CPI is gamed (manipulated)...the numbers being touted are bogus. =.=
I don’t know, nor do I care what is in the gub’mint’s B.S. shopping basket, but my basket is going up like mad.
I’ll give you one example. My brand of coffee (Chock Full o’Nuts 100% Columbian Blend) went from a 33 oz can down to 27.5 oz a few months ago, while the price at Publix remained the same at $11.89. Two weeks ago they jacked it up to $12.89. That is a 30% hike in the price of that particular product.
The same package resizing has been going on with many items.
At least Chock Full o’Nuts made the physical can smaller too so it was obvious at a glance that something had changed.
Some other products still come in the same size package, just the contents has been reduced, and your only clue is if you read the “net weight” figure on the package.
Figures don’t lie, but gub’mint bureaucrats do it for a living.
I went grocery shopping at my local Cub Foods yesterday and the price of a head of iceberg lettuce had gone from $1.29 (where is was Tuesday - not a sale price) to $1.99. I know it’s still only $1.99, but not long ago it was running around $.79. We are feeding a family of 7 on one income, so I watch the price of EVERYTHING really closely and it ALL is going up. Look at cereal for instance — the price goes up 40 or 50 cents a box, fine. But they also make the box smaller, many are less than 12 oz now. That’s 4 or 5 bowls of cereal per box in our family.
And this is just the beginning.....
Yes. I'll be growing my own cherry tomatoes. You should, too.
Shrinking a container’s size while selling it at the same price is an easy way for a producer to disguise a price increase, but it still counts as price inflation since the government takes package sizes into account.
I’m with you Yankee. Problem is that average person making 50K or less spends a higher proportion on food and energy. So for us inflation is a great deal higher than what the CPI indicates. And their’s way more people making under 50K than over.
In the aggregate that puts a big crimp on the economy. That’s what the numbers don’t tell you.
I shoulld get some killer deals on ebay now. /s
Ive been needing to lose weight. Obama is so wise.
The problem is that higher prices are now 'baked into the cake'. Anyone who says that inflation is tame is like someone standing on a train track claiming that the ongoing train won't run over them. when the train is 2 miles away its easy to deny it...when the train is 1 mile away its easy to deny it...when the train is 1/2 mile away its still sorta' easy to deny it...when the train is 200 yards away those who deny it do so while their knees are wobbly...when the train is 100 yards away the deniers get cotton in their throats...and when the train is 10 yards away its too late to deny it, there's only time to jump out of the way and blame the engineer for not slamming on the brakes.
Right now, in our economy the train is about 200 yards away...and its not slowing down.
Seasonally adjusted annual rate percent change
Cereals and bakery products 6.1% in the last 3 months
Meats, poultry, fish, and eggs 4.4% in the last 3 months
Dairy and related products 2.1% in the last 3 months
Fruits and vegetables 12.1% in the last 3 months
Fats and oils 10.2% in the last 3 months
Motor fuel 53.5% in the last 3 months
(home) Fuel oil and other fuels 66.5% in the last 3 months (not seasonally adjusted)
No. Just because poorer people spend more of their discretionary incomes on food and energy (and they do), doesn't mean that the inflation rate is higher. Apples and oranges.
I think you meant to say that your discretionary income level is falling more rapidly (than that of someone with a higher income) because of rising food and energy costs.
Inflation destroys the value of savings, and today’s “government” is totally responsible for destruction of the dollar through spending-spree, dollar-printing inflation.
IT’s “TEA PARTY” time ... again.
Does anyone believe any numbers the gov. gives out anymore?
I give very little serious consideration to any government issued numbers on anything. They have lied so much I consider them in the ranks I do with the numbers the communist chinese issue.
The game is rigged, wall st. banks and gov. all in collusion and we are the ones being reamed a new one.
WEll Big E,
Then you do not work for some government.
Here’s the good (spin) news: “Consumer prices fell sharply in 2010, and over the last 12 months they are up just 1.6% despite recent increases in food and energy costs.”
Here’s the bad news that’s been left out:
CPI for December & January has been 0.9. And if volatility in the ME continues we’ll end up with double digit inflation before the year is over.
Beck has been talking about this for some time now.
They strip out food and energy which are skyrocketing, but leave in housing, which is falling. As though people buy homes every day.
The prices that American consumers pay for goods and services rose a seasonally adjusted 0.4% in January, mainly because of higher gas and grocery expenses, according to the latest government data.
Cotton is the culprit. Price increases on cotton, gasoline, groceries, even ground beef are climbing. Families just getting by are screwed.
sarge....absolutely true. The game is rigged so that the sheeple pay while the richest segment in our society (that in fact should now be bankrupt), the NY bankers and Wall Street players all get backstopped and made richer by the Federal Reserve and taxpayers. These are the people who put Obama and his czars into office.
Wall St should have been on the hook for the damage they created instead of putting taxpayers on the hook for them. They had years of illegal gains and wheeling dealing and they should have been required to payback and make amends.
I dealt with these issues in 2007/2008, that terrible winter. Because of the terribly rapid rise in food prices, I searched for and found less expensive options. For example, I ceased consuming boxed breakfast cereal and instead opted for old-fashioned oats and corn tortillas. Would I prefer the prepackaged breakfast cereal? Yes, but I can’t justify paying the prices. Over the past three years, however, even the prices of those substitutes almost doubled.
I also found different, less expensive grocery stores. Here in Oklahoma City, our grocery prices already rank among the lowest in the country. For produce especially, I turned to a Mexican grocer. But even there, I take great care to choose only the least costly fruits and vegetables and strictly adhere to a price cap of 67 cents per pound.
I buy bread only at special discounters who charge $1/loaf or less. I anticipate their prices to increase. (I also walk or cycle to grocers; gasoline costs too much for my budget, and I need the exercise.)
Among the dietary changes that the inflation episode three years ago compelled me to undergo, giving up cheese entirely for several months perhaps caused me the most difficulty.
I don’t really have any answers for you, but I can recommend making careful choices, selecting less desirable substitute products (e.g., whole oats instead of breakfast cereal; cabbage instead of lettuce), and seeking less expensive grocers.
Ben Bernanke has much explaining to do.
You need to include a decoder ring with a message like that.
Back in the late sixties ice cream in half gallon containers (64 oz.) was available on sale for 35 cents. In ‘72 I could buy choice T-bone steak which was equal to today’s prime grade for 79 cents a pound EVERYDAY. Compare those figures to the “official” inflation adjustments from the government, you won’t know whether to laugh or cry. My income in those days was around 500 a month. Tell me I wasn’t better off than most folks are now. Oh, wait, no I wasn’t, I didn’t have a cell phone to “sext” on back then, I just had sex every night instead.
A few years ago I was saying on FR that the government figures are rigged and we were not nearly as well off as the politicians said and I was regularly flamed for it. Now it seems that just about everyone is convinced of it.
I believe what I see, not what the government says and I know that in my lifetime we have gone from a time when a high school dropout could work hard and get married, raise a family, own a house and a small farm and have a good life and I know because my father did it with an eighth grade education to a time when college graduates are lucky if they have a real eighth grade education and many of them take jobs my father would have considered far beneath him.
Rip: you’re not kidding. The government inflation numbers are a joke. By that I mean, they way-y underestimate inflation. I used your ice cream example, 64 oz. for 35 cents, and compared against what Turkey Hill is charging today. Today’s ice cream is roughly 11.5 times more expensive than in 1968. Yet, the Dept. of Labor tells me prices have only gone up 6.33 times since 1968.
Or, your steak example. $.79 per pound in 1972, compared to $8.00 per pound today, that’s 10 times as much. The DOL tells me inflation only went up 5.27 times since 1972. What do you expect from your government? Lies, lies, and more lies.