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Inflation Takes Biggest Jump In 6 Months

From a shocked Associated Press:

The Federal Reserve Building in Washington, D.C. The US central ...

The Federal Reserve Building in Washington, D.C.

Wholesale inflation takes biggest jump in 6 months

Thursday, February 19, 2009

WASHINGTON: Inflation at the wholesale level surged unexpectedly in January, reflecting sharply higher prices for gasoline and other energy products.

The Labor Department said Thursday that wholesale prices increased by 0.8 percent last month, the biggest gain since last July and well above the 0.2 percent increase that economists had expected.

The acceleration was led by a 3.7 percent surge in energy prices with gasoline prices jumping by 15 percent, the biggest gain in 14 months.

Even outside the volatile food and energy sectors, wholesale prices showed a bigger-than-expected increase, rising by 0.4 percent. Economists had expected a slight 0.1 percent rise in so-called core inflation…

Despite the big jump in wholesale prices in January, economists do not believe inflation is on the verge of becoming a problem, given the country’s deep recession

Federal Reserve Chairman Ben Bernanke told an audience at the National Press Club on Wednesday that he saw little risk that the Fed’s efforts to fight the recession and a severe financial crisis would trigger inflation pressures.

He said that once the economy begins to rebound and financial markets stabilize, the Fed will be able to quickly reverse the actions it has taken before inflation becomes a problem.

Well, if Mr. Bernanke says inflation won’t be a problem, then we guess we don’t have anything to worry about.

It’s not like he’s ever been wrong before.

And printing trillions of dollars certainly can’t be expected to cause inflation.

This article was posted by Steve on Thursday, February 19th, 2009. Comments are currently closed.

9 Responses to “Inflation Takes Biggest Jump In 6 Months”

  1. Colonel1961 says:

    Maybe they’ll lower the discount rate to offset inflation. lol

  2. proreason says:

    The manipulators are tired of low oil prices.

    That hoax pulled its load in getting The Moron elected.

    Now it’s time to get back to trasferring our money back to them.

  3. MinnesotaRush says:

    That song, or the line in the song, “We’ve only just begun ..” keeps rolling thru my mind. Not quite sure why .. hmmmm.

    • sheehanjihad says:

      MinnesotaRush…here ya go!

      we’ve only just begun, to steal
      lies, broken promises
      a nice kiss my ass and we’re on our way
      we’ve only just begun…..

      before the light of sun, can shine
      on our huge spending bill…
      that pays them back for the votes we bought
      oh yes, we’ve just begun….

      we want our country to turn socialist
      silencing those who’re in our way
      we’ll take your taxes for the few of us
      who’ll control your lives from day to day….

      when congress votes again, we’ll smile
      new legislation that needs to pass
      now grab your ankles and bare your ass
      we’ve only just begun………

    • JohnMG says:

      I find myself smiling ruefully at the lyrics, sj. Your mordant wit is what keeps me focused on making preparations for the grim future we seem to face. Maybe the sooner we arrive at the crux, the better for us all. Why prolong the anxiety?

  4. MinnesotaRush says:

    By gosh, SJ .. that’s it!!! Thank you! :)

  5. cjokry says:

    I was afraid back-to-back trillion-dollar rollouts from the printing presses might have this effect. Seriously, Obamabucks aren’t gonna be worth anything.

  6. Weasel says:

    “The One” still has his work cut out for himself if he is trying to out do Carter’s “Stagflation” and create the worst economy since FDR. But with the help of Congress, I’m sure he can do it. And he has “Jummuh’s” approval on it:

  7. 12 Gauge Rage says:

    Since The One is bent on making us into another Wiemar Republic, are we all going to be given wheel barrows to haul around our mounds of worthless currency just to buy a gallon of gasoline or a loaf of bread?

    BTW nice song SJ, we’ve got laugh about something during these trying times.

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