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Consumer Prices Rise In July – Unexpectedly

From a perpetually blindsided Reuters:

Consumer prices rise in July

By Lucia Mutikani, Editing by Andrea Ricci | Reuters
August 18, 2011

WASHINGTON (Reuters) – Consumer prices rose faster than expected in July as gasoline rebounded sharply, but a moderation in underlying price pressures backed the Federal Reserve’s view of a low inflation environment.

The consumer price index is obviously racist. Still, where is this "moderation in underlying price pressures"? Isn’t the price of everything – even apart from food and gas (which the government refuses to count) — going up?

The Labor Department said its Consumer Price Index increased 0.5 percent, the largest gain since March, after falling 0.2 percent in June. Economists polled by Reuters had expected a 0.2 percent rise last month.

Oh, those Reuters economists.

Gasoline, which rose 4.7 percent after falling 6.8 percent the prior month, accounted for about half of the rise in CPI last month.

Was that because of the ‘Arab Spring’ or the Japanese Tsunami?

Core CPI — excluding food and energy — rose 0.2 percent after rising 0.3 percent in June

And, after all, why count food or energy prices when you are measuring inflation? We don’t know anyone who eats or drives a car.

Of course, the only reason we even have a ‘Core CPI’ is so the government can pretend there is no inflation and thereby avoid paying cost of living increases, which it literally cannot afford.

Data on Wednesday showed wholesale prices, excluding food and energy, rose at their quickest pace in six months in July, with the year-over-year increase the largest since June 2009.

Given limited pricing power for producers as consumers grapple with a 9.1 percent unemployment rate, inflation is not regarded as a threat now for an economy which barely grew in the first half of the year.

When people are given more than two years of unemployment benefits, we’re not sure that a high jobless rate prevents inflation. Especially, since we clearly have inflation, whether the government will admit it or not.

This article was posted by Steve on Thursday, August 18th, 2011. Comments are currently closed.

7 Responses to “Consumer Prices Rise In July – Unexpectedly”

  1. jimreport says:

    I thought something was suspicious when I went into the grocery store with $100 and came out broke with two bags of groceries.

    • tranquil.night says:

      Use unemployment benefits or an EBT card. You put $1.5 back into the economy for every $1 spent. It’s our best job-creator!

  2. proreason says:

    Don’t worry.

    Congress will give themselves raises, as if the world’s largest multi-millionaire club needs them.

    And their porfolios will continue to skyrocket.

    Of course, their true wealth, like the Moron’s, can’t be counted. There is no metric to measure power.

  3. Petronius says:

    Motto of the Ruling Class elites : “privatize the profits and socialize the losses.”

    The rate of inflation is either about 2.5 percent or 12 percent, depending on whose figures you believe, the government’s or your lying wallet’s. http://www.shadowstats.com/

    On 9 Aug, in a break from tradition, Uncle Ben Bernanke and a majority of the Fed promised to keep interest rates at zero to 0.25 percent for two years.

    Following the Fed’s announcement, the 10 year yield dropped straight down one full percentage point. At 2.06%, the yield is now below the rate of inflation, no matter whose numbers you choose.

    The Fed rate of 0.25% is therefore a negative real rate of return. As a result, savers will lose money on their bank deposits and money market accounts.

    Thomas Hoenig, chief of the Kansas City Fed and a critic of the Fed’s easy money policies, recently testified to Congress that the Fed’s easy money policy “redistributes wealth in this country from the saver to debtor by pushing interest rates on deposits and other types of assets below what they would otherwise be. [Thus] savers and those on fixed incomes subsidize borrowers.”

    In other words, it is a process for confiscation and redistribution of wealth, primarily the wealth of seniors and retirees. This does indeed constitute a form of thievery and class warfare, if not outright treason.

    However, Bernanke’s bad news for savers was good news for gold, which continues to gain in value, setting a new record high this morning of $1,829.70. Negative or nominal interest rates are always bullish for gold. In effect, the Fed has guaranteed to support the bull market in gold for two more golden years.

    As a result of Bernanke’s announcement, it now takes more of the kind of money Bernanke believes in (US paper dollars) to buy the kind of money he does not believe in (gold).

    Gold is on path to assuming its ancient role as a currency. All major central banks, except the US, are increasing their physical gold reserves. South Korea recently entered the gold market for the first time since 1998.

    Who else is buying gold? The People’s Bank of China. The Chinese middle class. Reserve Bank of India. Wealthy individual investors. Goldman Sachs. Barclays Capital. John Paulson. Jim Rogers. Most of the big institutional investors will probably become buyers at higher levels.

    Even one of the world’s greatest living Marxists, Hugo Chavez, announced that he is repatriating Venezuelan gold reserves from the Bank of England and other countries, and is nationalizing gold mining companies operating in Venezuela.

    With the S&P stock index down 4% this morning, we have to wonder what’s next? What’s next in store for this brave, new Liberal paradise that Nerobama and the Sandinistas in Congress have created?

    Of course somebody has to pay for all of this, and that’s where we come in. The American middle class and working class are going to be driven to the wall.

    • proreason says:

      One of the greatest but rarely stated bullets aimed squarely at the temples of senior citizens is the artificially low interest rates, which have helped the government keep the deficit 1% below what it would have been, but which have devastated millions of senior citizens….after they lost 25 to 50% of their lifetime savings in the marxists’ 2008 economic meltdown.

      It isn’t hard to understand.

      Traditionally, MM’s have paid about 2 to 3% above inflation. Inflation has averaged 3 to 4%. A retired person with $100K in savings would have seen his savings grow to about $120K in normal times, since the Moron took office. Instead, their savings are now at about $101K, if that….a 20% drop vs “normal”.

      Another way to look at is to assume that to maintain principle, a senior would have been able to withdraw to withdraw 5 to 6 thousand annually (which for most would be 10 to 20% of their income). In ObamaLand, the same rate of withdrawl has reduced principle from 100K to 82K. But it’s actually worse, because inflation HAS gone up. instead of withdrawing 5 to 6K, the senior now has to withdraw 7 to 8K from less principle.

      This is a guaranteed recipe for poverty. An entire generation of seniors is being thrown into poverty. Deliberately so, because seniors are the group that is most dependent on earning interest on their savings. A young working person typically has little in savings but has a job that is likely to keep pace with inflatiion. In other words, if you are working, inflation is not as insidious.

      But all of this does make Seniors more dependent on Obamy, doesn’t it? Thank goodness Commissar Pelosi is working to hard looking out for older people!

    • tranquil.night says:

      Seniors are also first to go under the knife when it comes to any discussion of reducing the size of government as well, for the obvious political reasons that have been discussed ad nauseum.

      Targeted destruction leading to dependency, with it being blamed on the Republicans trying to restrain spending all along the way. Insidious is a good word.

  4. sticks says:

    Reality is “unexpected” with these people, when the airplane which is out of fuel crashes to the earth it will be “unexpected.” These people belong to the flat earth truthers sociaty.
    This artical seems to be an attempt to confuse me into wondering if it’s as bad as I think. My empty wallet tells a diferent story.

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