Companies paid more for food, goods in July

msnbc ^ | ap

[tobyhill]

Companies paid higher prices for tobacco, pickup trucks and pharmaceuticals in July, driving underlying wholesale inflation up by the most in six months.

This measure of inflation, which excludes volatile food and energy prices, is known as the core Producer Price Index. It rose 0.4 percent in July, the biggest increase since January.

The overall PPI, which measures price changes in goods before they reach the consumer, rose 0.2 percent last month, the Labor Department said Wednesday. That follows a 0.4 percent drop in June, the first decline in 17 months.

Gas prices fell for the second straight month. Food costs rose 0.6 percent, the biggest rise since February.

The jump in the core index is unlikely to continue, economists said. One reason is that raw material prices are increasing at a slower pace than the finished goods tracked by the PPI.

[Right Brother]

Man, I’m sure glad it was only ‘companies’ that paid higher prices and not the general public.

[Squidster]

Check out the Producer Price Index from this economist. See the deflation/inflation cycle? We are in a big inflation cycle at the moment, thanks to The Fed.

http://confoundedinterest.wordpress.com/

[Buckeye McFrog]

The Dems and the MSM don’t want to realize it, but when Rick Perry called QE “treasonous”, he had the ear of a whole lot of voters.

[TomGuy]

... Food costs rose 0.6 percent

and contents shrank by 25%

==

[PogySailor]

Yes, we now have the privilege of paying more and more for less and less.

Thanks Obama!
Thanks Bernake & Greenspan!
Thanks Spendthrift Congress

[jennings2004]

No kidding, Sherlock.../s

[Oatka]

This measure of inflation, which excludes volatile food and energy prices,

That excuse is getting pretty lame now. In this day of powerful computers, you mean to tell me they couldn't figure out a program that would smooth out these "volatiles" so that they could be included and give a more realistic figure? At the least, somebody on our side should do it and constantly put that figure alongside the government's.