Posted on 10/14/2012 2:02:59 PM PDT by BenLurkin
Producer prices climbed sharply in September for the second month as gasoline prices jumped, a government report said Friday.
Producer prices rose 1.1% in September after an increase of 1.7% in August, the Labor Department said.
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The gain in producer prices, tracking the level of inflation at the wholesale level, was due to continued higher energy costs — particularly gasoline.
Energy prices advanced 4.7% in September after having risen 6.4% in August. A 9.8% gain in gasoline prices accounted for more than 80% of the September gain, the Labor Department said.
Food prices rose 0.2% in September, for the fourth consecutive increase. Analysts said the impact of the severe drought in the Midwest is slowly filtering up the production chain. Read the full government report.
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In the core price index, higher prices for light motor trucks were offset by declining prices for communications equipment.
Compared with a year ago, the producer price index is up 2.1%, the highest level since March. Core prices are up 2.3% over the past 12 months.
Producer prices of intermediate goods such as flour or cotton yarn, which have been processed but require further processing, rose 1.5%, the largest increase since February 2011.
Prices for crude goods like grains, livestock and crude petroleum that haven’t been fabricated or manufactured and not sold to consumers, rose 2.8%.
Core intermediate goods, to which the Federal Reserve pays close attention for signs of inflation, rose 0.6% in September, the first gain after four straight declines.
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While food prices will push up grocery bills in the months ahead, earlier-stage core trends suggest “that there is little in the way of building inflation pressure,” said Robert Kavcic, economist at BMO Capital Markets. {HA! -bl}
... Through August, the CPI was up 1.7% on a year-on-year basis.
(Excerpt) Read more at articles.marketwatch.com ...
I think the rate of inflation has been much higher than we’ve been led to believe.
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While food prices will push up grocery bills in the months ahead, earlier-stage core trends suggest “that there is little in the way of building inflation pressure,” said Robert Kavcic, economist at BMO Capital Markets.
Gee, 1.1, 1.7 percent doesn't sound so bad... Wait a minute, that's in one month! Compounded over a year, that's ... Holy crap, that's HUGH inflation!!!
And OBAMA’s fault!
I did the grocery shopping today. I just flat don’t believe that number.
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