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Energy, Food Prices Jump Unexpectedly

From a context free Associated Press:

January wholesale prices jump 1.4 percent

By Martin Crutsinger, AP Economics Writer

February 18, 2010

WASHINGTON – Wholesale prices shot up at double the expected pace in January, propelled higher by big increases in energy costs. The surprisingly large jump was viewed as a temporary blip and not the start of inflation problems, however.

The Labor Department said Thursday that wholesale prices rose 1.4 percent last month, reflecting higher costs for gasoline and other energy products. Private economists had expected a 0.7 percent increase.

Core inflation at the wholesale level, which excludes energy and food, rose 0.3 percent in January, faster than the 0.1 percent increase economists had predicted

The increase is unexpectedly twice and even three times what the expert economists had predicted?

The hell you say.

But over the past 12 months, core prices at the wholesale level are up a moderate 1 percent. Economists believe that inflation is not a problem at the moment and is not likely to become a threat any time soon because of all the downward pressures on wages and prices as a result of the recession…

Well, if that is what the economists are saying then we are reassured that there is nothing to worry about.

The wholesale price report showed that energy prices rose 5.1 percent last month, the biggest gain since energy prices rose 5.6 percent in November. The January increase was led by a 11.5 percent advance in gasoline prices and a 16.2 percent increase in the cost of home heating oil.

Food prices rose 0.4 percent in January following a 1.3 percent jump in December. Last month, the price increases came in meat, up 3 percent, processed poultry, up 2.3 percent and milk products, which rose 1.7 percent…

This sounds like the perfect time to press for ‘Cap And Trade.’

What could be wrong with heaping the largest tax increase in history on our only viable energy sources?

We have to prevent ‘global warming.’

After all, what is a bigger threat in the world than the possibility of a longer growing season and cheaper food?

This article was posted by Steve Gilbert on Thursday, February 18th, 2010. Comments are currently closed.

9 Responses to “Energy, Food Prices Jump Unexpectedly”

  1. proreason

    “The surprisingly large jump was viewed as a temporary blip and not the start of inflation problems, however. ”

    Whew.

    The unnamed expert has my total confidence. It’s hard to think of a time when economists were wrong about the economy.

    And inflation is something that Democrats watch like a hawk. That’s why Obamy has implemented his cutthroat fiscal responsibility program.

    As the article makes clear, we are in good hands.

  2. GetBackJack

    I wonder why …

    From website HOW MUCH IS THAT WORTH … comparing monetary values from the past to today …

    To buy $20 worth of groceries in 1953 requires you haul $182.00 to the store today.

    (crickets)

    • U NO HOO

      Back about 1960 after a snow storm I was at my grandmother’s house and told her I was going out to make some money shoveling sidewalks of snow, she said, “Charge enough money, the minimum wage is a dollar an hour.”

      Just saying…

  3. Yarddog1

    Who would catagorize this as unexpected?

    There is no doubt that things will get much worse.

    Temporary blip my arse.

  4. Petronius

    Ever notice how everything that happens in the economy these days is “surprising” or “unexpected” or “unpredicted”?

    “The surprisingly large jump was viewed as a temporary blip and not the start of inflation problems, however.”

    Really? Well let’s check and see what else is happening in the economy.

    Here’s an interesting item:

    Long-term interest rates also rose this week, hitting a 5-week high. Yesterday (Wed.) the 30-year rate closed at 4.71%, breaking through the 4.65% barrier and — if it continues to rise and hold above 4.75% — signaling that a mega trend change in interest rates may be underway. A 30-year rate of 4.75% would signal that we are on the verge of rising interest rates for many years to come, leading to collapse of bond prices and housing.

    Presently, as I write this, the 30-year rate has advanced to 4.76%.

    And what about these other indicators? What do they suggest?

    oil $78.78 bbl and rising.
    gold $1119.
    silver $16.08.
    the Australian dollar, Canadian dollar, Swiss franc, Euro, the yen, and even the peso –– all up again today against the US dollar.

    Hmmm? Well? I’m waiting?

    (sound of crickets chirping)

    You might want to think about selling any US government bonds you may be holding.

    • proreason

      I’ll tell you what they suggest to me.

      There is a reason “the US is always to blame” Obamy is keeping Pakistan going as a shoot-em-up, even though it causes such pain and suffering to so many worthy citizens of the world……the little boy king will soon need a serious war distraction to divert the attention of his golden goose country.

  5. mr_bill

    Here come higher taxes (a la Obama’s deficit commission). Here comes high inflation, high interest rates, higher unemployment, and a declining dollar value.

    Its like the second coming………..of Jimmy Carter. The only thing we’re missing is gasoline price caps and the ensuing shortages and rationing.

    I still take heart though, as the saying goes: “It takes a Carter to get a Reagan,” if we can survive that long.

  6. canary

    Obama promised fuel would skyrocket and bankrupt the coal industry, and Michelle told us to follow her example & grow a garden of lettuce & peas. We won’t have her custom human sludge & chef’s secret of shell & other ingredients, but at least we will no where it comes from when Americans are forced to build outhouses and recycle rather than dig new holes. No dogs to even guard our gardens. Thieves will still for raw meat. On the plus side there will be no insects to pester us. All will be eaten.

  7. jobeth

    “Food prices rose 0.4 percent in January following a 1.3 percent jump in December. Last month, the price increases came in meat, up 3 percent, processed poultry, up 2.3 percent and milk products, which rose 1.7 percent “

    This is really a good thing and all in the grand plan!

    Michelle must be behind this in order to support her wonderful ‘anti-obesity’ crusaid. There will be no more fatties once this gets going. We won’t be able to afford that pesky stuff called food.

    I now have begun my diet. Didn’t want to…but thanks to our wonderful Daddy and Mommy prez we are so well taken care of we don’t ever have to be worried about being called ‘fatty’ again! We are so fortunate aren’t we?

    And to add to our well being…just like that woman said during the ‘I won’s’ campaign, I won’t have to worry about putting gas in my car anymore! I can no longer afford a car let alone gas. Gas is too expensive now. But as she said, we no longer worry about affording it. Isn’t he just wonderful? He thinks of everything.

    I just hope I can catch a glimpse of him as he and Michelle fly off in AF1 for that getaway dinner date. They must be so tired after all this ‘thinking up’ ways to take care of us.

    (/SARC)

    For the record…it’s not that bad for us yet…but wait a few weeks..we are almost there. I am expecting run away inflation across the board. I’m stocking up and thinking ‘gold’.




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