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 ...
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.
Goody.
I shoulld get some killer deals on ebay now. /s
Goody.
Ive been needing to lose weight. Obama is so wise.
Let’s Move.
/s
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.
http://www.bls.gov/news.release/cpi.t02.htm
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.
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