Patters

http://abcnews.go.com/Business/wireStory?id=5377424

Soaring costs for gasoline and food pushed inflation at the wholesale level up by a larger-than-expected amount in June, leaving inflation rising over the past year at the fastest pace in more than a quarter-century.

The Labor Department reported that wholesale prices jumped by 1.8 percent last month, the biggest one-month rise since last November. Over the past 12 months, wholesale prices are up 9.2 percent, the largest year-over-year surge since June 1981, another period when soaring energy costs were giving the country inflation pains.

Core inflation, which excludes energy and food, was better behaved in June, rising by just 0.2 percent, slightly lower than expectations.

Harry Boy

I'ts getting bad out there, I wish Congress would step in and try to do something (they're on vacation)

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Harry Boy (Genius)

In The Absence Of Law And Order Society Will Surely Destroy Itself

BelichickFan

By including food and energy you're double dipping on bad news because we already know and talk about gas prices, etc. It's good that core inflation is reasonable - food and energy are not included as they tend to be volatile and big dips or rises can overshadow everything else.

So, year, we know gas is skyrocketing - thanks - and thanks for not drilling too, that will help I'm sure, - but core inflation is in check.

scout

We are a bunch of whiners.
-food
-gas
-housing, fanny and freddie
-environment
-war
-stock market
-jobs
-airline industry
-automobile industry
-cost of medicine

Everything's good, just a mental recession.

Harry Boy

If GW Bush waved a magic wand this afternoon and brought gas down to 57 cents a gal, created free health care, brought everybodys mortgage down to $63 dollars a month and then Found A Cure For Cancer this Democrat Congress would be against it and do their best to keep things right the way they are now.

The "Grinning Pelosi Gang" love whats going on now thats why they are silent and thats why they are "DOING NOTHING"

We would have oil flowing from Alaska today if it wasn't for these bastards.

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Harry Boy (Genius)

In The Absence Of Law And Order Society Will Surely Destroy Itself

Patters

It's absurd, and in my opinion nothing but an attempt by by the Fed to try and deceive the markets (which is not necessarily a bad idea). It's absurd because food and energy are two things we cannot do without. I could see not taking them into account on a month-by-month basis, but certainly on an annual or semi-annual basis they are completely relevant, and those prices are surely on the verge of putting pressure on other wholesale prices. Unless there's some sort of turnaround, I can't see the core inflation values remaining low for much longer, can you?

BelichickFan

I guess it would make sense for core inflation to start moving up but I don't know, I'm not an economist. Regarding core inflation, it's not absurd. It might be absurd for some guy on the street to try to comprehend but as an economic measure it's not absurd as it knocks out highly volatile aspects of the economy. It's an example of "a little information is dangerous" and people who have no concept of economics are better off not using words like core inflation.

PatriotsReign

And we're not in a recession, right?

It doesn't really matter much Patters. As long as oil prices remain high, ALL inflation WILL increase significantly. By reporting that inflation wasn't as bad as expected when you don't consider food and energy is a farce.

But even the "lower than expected" inflation must eventually "exceed expectations" at some point. costs can not be held down with the price of oil and with the money supply as great as it is.

Every time the fed subsidizes Fannie Mae or Suzie Mae, the money supply increases. When that happens, inflation ALWAYS follows.

We're in a damned if you do, and damned if you don't situation.

Patters

Add to that the fact that Republicans have allowed deficit spending to soar, which reduces our options in trying to manage the economy. Bush helped get us out of the first recession by spending hundreds of billions on government programs (war), but now it becomes riskier and riskier to deficit spend. Whoever inherits this mess -- hopefully Obama -- is really going to have his hands full trying to solve the disaster the Republicans have left behind.

BelichickFan

And Democrats have refused for decades to drill our natural resources - if we had our own oil we wouldn't have this problem. Quit barking at the Republicans over EVERYTHING, there's more than enough blame to go around.