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CPI Comes At 0.5%, Ex-Food And Energy 0.1%, Below Expectations, QE3 Door Still Open

Tyler Durden's picture


And again we learn from the Department of Truth that core inflation is non-existent. Of course, this number is not applicable to anyone who actually has to buy things. According to the BLS CPI came in line with expectations, and unchanged from last month, at 0.5%. CPI ex food and energy of 0.1% actually declined from last month's 0.2%, and was below consensus of 0.2%. From the release: "The Consumer Price Index for All Urban Consumers (CPI-U) increased  0.5 percent in March on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.7 percent before seasonal adjustment.  Gasoline and food prices continued to rise and together accounted for  almost three quarters of the seasonally adjusted all items increase in March. The gasoline index posted its ninth consecutive increase and has now risen 14.4 percent over the last three months. The household energy index rose as well, with advances in the fuel oil and electricity indexes more than offsetting a decline in the index for natural gas. The food at home index continued to accelerate in March, rising 1.1 percent as all six major grocery store food groups increased." What this means is that core CPI will likely not get high enough to derail the option for QE3 if and when it comes around some time in Q3.


Still the trend is rather obvious:

Focusing on food and energy:


The food index rose 0.8 percent in March after rising 0.6 percent in February. The food at home index increased 1.1 percent in March and has risen 2.7 percent over the past three months. All six major grocery store food groups increased in March, with increases ranging from 0.5 percent for cereals and bakery products to 1.9 percent for fruits and vegetables. Within the fruits and vegetables component, the fresh vegetables index rose 4.7 percent in March after a 6.7 percent increase in February, as indexes for potatoes, lettuce, and tomatoes all posted significant increases. The index for dairy and related products increased 1.3 percent, while the index for meats, poultry, fish, and eggs rose 1.1 percent. The index for nonalcoholic beverages increased 0.8 percent as the coffee index climbed 3.5 percent. Over the past 12 months, the index for food at home has risen 3.6 percent with the index for meats, poultry, fish and eggs up 7.9 percent. The index for food away from home increased 0.3 percent in March, its largest increase since September, and has risen 1.9 percent over the past 12 months.


The energy index rose 3.5 percent in March after increasing 3.4 percent in February. It has increased for nine months in a row, rising 23.7 percent since June 2010. The gasoline index rose 5.6 percent in March after a 4.7 percent increase in February. (Before seasonal adjustment, gasoline prices rose 11.7 percent in March.) The index for household energy advanced 0.6 percent in March after a 1.3 percent increase in February. The fuel oil index rose 6.2 percent and has increased 37.2 percent in the last six months. The index for electricity increased 0.7 percent in March, while the index for natural gas declined 1.4 percent. The household energy index has risen 1.2 percent over the last 12 months, with the fuel oil index up 34.0 percent and the electricity index up 1.0 percent but the index for natural gas down 5.5 percent.


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Fri, 04/15/2011 - 08:39 | 1171844 Cognitive Dissonance
Cognitive Dissonance's picture

You can't find what you're not looking for.

Fri, 04/15/2011 - 09:32 | 1172059 Vergeltung
Vergeltung's picture

^^^^thread winner.  :-)


Fri, 04/15/2011 - 12:01 | 1172714 carbonmutant
carbonmutant's picture


Fri, 04/15/2011 - 08:38 | 1171847 Caviar Emptor
Caviar Emptor's picture

PPI hot, CPI cool. 

Another piece of evidence that consumer demand is too weak to pass on higher costs to.

Biflation, baby.

Look for more margin squeezes. 

Fri, 04/15/2011 - 08:48 | 1171876 augie
augie's picture

i wish hookers squeezed as hard as these margins... for that i gotta pay extra.

Fri, 04/15/2011 - 08:52 | 1171894 cowpieflapjack
cowpieflapjack's picture

nice one

Fri, 04/15/2011 - 08:57 | 1171914 Caviar Emptor
Caviar Emptor's picture


Hang on. Hookers aren't in CPI yet, and the squeeze is on

Fri, 04/15/2011 - 09:59 | 1172164 spiral_eyes
spiral_eyes's picture

deflation in hookers here in the uk. flooded with cheap goods from eastern europe. 

Fri, 04/15/2011 - 08:54 | 1171901 SheepDog-One
SheepDog-One's picture

Right I think thats the real story with inflation, prices are higher and for now companies are having to mop that up because theres less demand. Oil companies announced demand is falling with gas at a national avg of $3.80. How can you pass along cost of $4.50 when theyre not buying at $3.80? Doesnt work.

That will soon blow up spectacularly.

Fri, 04/15/2011 - 08:59 | 1171925 Caviar Emptor
Caviar Emptor's picture


DOn't forget that housing is over 40% of CPI and that's deflating. So the headline number is both hiding the increased cost of living and masking deflation. 

Fri, 04/15/2011 - 09:14 | 1171997 SheepDog-One
SheepDog-One's picture

No doubt. Throw in americans #1 claim of 'wealth' that being their home and property falling to mask both prices rising and real wealth falling. What a nightmare.

Fri, 04/15/2011 - 09:47 | 1172111 MachoMan
MachoMan's picture

Hence the need to downsize and eek out every last bit of efficiency from the work force...  the problem, of course, is that eventually we figure out that superman does not exist and that there are bounds to efficiency...  which requires keeping our boxes the same, but the food inside them less and less...  in the hopes that no one understands the higher costs per unit...  eventually this plan becomes all too obvious as well...  we're right at that point...  what happens after is anyone's guess, but I foresee barren shelves, dirty faces, and hungry stomachs.

Fri, 04/15/2011 - 08:40 | 1171848 Debtless
Debtless's picture

Forgive me Tyler. Zero Hedge is as good a place as any for this since there are many here whom share my frustrations.

At this point who I am is not important. That will come in time if warranted. And if so will become known enough in every American household I suppose. 


I have never been interested in being a politician. I fact, I believe career politicians have for certain distorted and all but destroyed the values and honor of our country. Our founding fathers were purposefully not career politicians, they had real world jobs and met only briefly throughout the year to discuss issues and legislate before returning to their individual livelihoods. Over the years the American political system has become a corruption filled game of corporate-interest power-grabbing and self-serving backroom dealing much to the all to often benefit of an elite few at the cost of the very many.

After the banking crisis, and like many other Americans I’m sure – my view of politics have become inescapable as the broadcast news the daily antics of destructive bickering from both parties as our country seems to waiver on some quality of life abyss. A country seemingly where 2 sets of laws now exist: one for ordinary citizens and another for those of privilege and power. A country where the most powerful men and women go only so far as to censure (think scold) one another without teeth when one of “their own” violates law or ethics. Washington, the entire system, needs cleansing of the filth and corruption. The first step is exposing its motives and behavior to daylight. That’s where I will come in. That’s what I will exclusively stand for. I will become the enema for our body politic. The rest ladies and gentlemen, will be up to you.

I don’t have powerful friends. I am not loyal to a party line. Corporate interests are not my concern. I am merely a proud law-abiding American citizen who is surely full of flaws and more than a bit fed up with the rancid behavior of our leaders. I am brutally honest. And its honesty that seems to be lacking more than ever in Washington.

I will run for the highest office I can, the US Senate. And if people elect me, I will work diligently for only a single term to expose corruption and seek justice for those who act against the American people’s interests. My role will be to inform the American people of how things really work, naming names to deeds and influences, and bringing true transparency to what we all know has been opaque for far too long. After that term I will step down, and hand that torch to the next proud American who is willing to further the people’s cause.

I will abstain from most votes on issues of social engineering and of things I don’t pretend to know much about. I will however, keep the public informed daily on what I’m exposed to through a blog and a network of others who will feed from its content. I won’t be in Washington to make friends - that my fellow Americans - you can count on.

This is my campaign exploratory. If there is willingness for this type of leadership out there I will run for office. If not, I won’t. I don’t want donations, nor a political action committee. The internet can provide the medium for word of mouth awareness among real people, and you provide the audience through your own families, friends and colleagues. I hope the time for such a campaign on ordinary people’s behalf is now. Imagine that, a government by the ordinary people for the ordinary people. Novel huh?

Again, I have never been interested in being a politician. But someone has to step up.


Fri, 04/15/2011 - 08:40 | 1171855 cossack55
cossack55's picture

Stay out of hot tubs.

Fri, 04/15/2011 - 08:56 | 1171908 Long-John-Silver
Long-John-Silver's picture

The Progressives have neutered congress. The house and senate mean nothing. You waste your time and effort. Obama has installed his Czar's in the places of real power such as the EPA and FCC. He legislates as a dictator and starts a war without consulting congress. What does congress do about it? Nothing at all because they can do nothing about it, they are powerless.

Nixon drove this ship of state into a debt berg when he took us off the Gold standard. Our money has been sinking sense. The unsinkable worlds currency is sinking. Put on your life jacket and take a seat in a life boat because this ship is going down by the bow.

Fri, 04/15/2011 - 09:03 | 1171945 Debtless
Debtless's picture

I understand the feeling of helplessness LJS...of some script playing out regardless of actor names and titles. However, Obama's term will end and the pendulum will again swing the opposite direction. I don't think time or energy is wasted in seeking to change the status quo. And though i certainly have a ready life jacket for my family (or at least the effort) i don't think just preparing my own for an inevitable titanic ending is our only option.

Fri, 04/15/2011 - 09:04 | 1171965 Bicycle Repairman
Bicycle Repairman's picture

"Obama's term will end"

Four years ago you might have said "Bush's term will end"

Get it?

Fri, 04/15/2011 - 09:15 | 1171994 Debtless
Debtless's picture

Have the players Dodd, Schumer, Corker, Pelosi, Reed, Frank, Boenher, Paul and the like had no role in any of this? My goal is not to fix everything, it is to begin the exposure. If i am unfortunately suicided after a few weeks so be it. The torch can then be picked up by a motivated other. 

Fri, 04/15/2011 - 09:17 | 1172009 Beam Me Up Scotty
Beam Me Up Scotty's picture

I voted for Bush twice. He was a terrible president. I can't think of a bad enough adjective to describe Obama. He's worse than horrible!!

Fri, 04/15/2011 - 08:58 | 1171932 cowpieflapjack
cowpieflapjack's picture

Although I agree in principle with most of which you have written here, I can't help but think that many politicians arrive in DC, or any other city where comedians congregate, full of the ideology of the uninitiated. Soon thereafter the "game" is on. Any behaviour predicated on the premise that you have joined the political ranks to serve your constituents will quickly be stripped from your arsenal. It's lobbying and money that grease the system and no amount of public or private hand wringing will wrest those tools from the hands of the privileged. The road to hell is paved.......whatever. 

Fri, 04/15/2011 - 09:08 | 1171970 Debtless
Debtless's picture

I understand an appreciate the comments. And it is my hope that the real-world support of regular people will replace that money to gain momentum in this kind of idea. I have never seen a candidate emerge for such a role under such a premise. If i was running for mayor to climb some career ladder it might be different. That I'm sure we have all seen before.

Fri, 04/15/2011 - 10:34 | 1172320 whstlblwr
whstlblwr's picture

Yes, good job. A brave man, finally. What state will you run for Senate? We have to hope there are more people who concerned with truth, honesty than scrambling for last scrap money.

Fri, 04/15/2011 - 10:55 | 1172423 Debtless
Debtless's picture

Thank you whstlblwr. I have not chosen a state, research would/could be done to find the most willing and successful seat. But I'm glad you find the motive worthy.

Fri, 04/15/2011 - 11:22 | 1172531 whstlblwr
whstlblwr's picture

Then you are smart too, it's good answer. Finally I don't feel so depressed. Let us know, I can't run, but help you spread word.

I hope others are brave too and willing to stand like you and fight in system for U.S. country.

Fri, 04/15/2011 - 11:35 | 1172598 Debtless
Debtless's picture

I will be a mere block then for the next to build upon. It's worth fighting for.

Fri, 04/15/2011 - 09:17 | 1172008 LawsofPhysics
LawsofPhysics's picture

Unfortunately, I have to agree with other comments here.  A fundamental social shift is required by humanity.  We have indeed "devolved" to a point where the "margin squeeze", if you want to think of it that way, will force humanity to make tough decisions.  The margins that I am referring to are those of energy and the physics of the biochemical and geochemical cycles that support life (at least in its current form) on this planet.  Economists have long since severed the tie between reality and their field and the current population "demands" to continue to live an energy-intensive lifestyle.  So sorry, this is not going to happen.  Rolling blackouts are already commonplace to many around the world.  Between Chernobyl and Fukushima, how much damage has/will be done to the productive capacity of the planet?  Yes, the earth and atmosphere are "big" but it takes a tremendous amount of energy to simply cycle carbon, nitrogen, sulfur, and phosphate (among other elements).  The organisms that do this require the right growing environments and there needs to be a lot of them to keep these processes going.  In the meantime you have idiot politicians talking about growth in areas like the southeast where they don't even have the rainfall numbers to fill the reservoirs they need to support the businesses that they have now.

No I am afraid that mankind has once again overstepped the bounds of its own technology and will suffer the consequences.  New technologies will come, but not without a serious bloodletting first.  Now everyone go and be productive today, oh yes, and be sure to hedge accordingly. 

Fri, 04/15/2011 - 09:53 | 1172134 tiger7905
tiger7905's picture

Latest from Arnie at Fairewinde Assocites on Fukushima, see's unit #4's fuel pool as greatest danger.

Fri, 04/15/2011 - 10:01 | 1172154 ebworthen
ebworthen's picture


Hello, Mr. Smith.

You have good intentions, but you are considering making yourself meat and fat for the Beltway sausage machine.

Nothing, and I mean nothing in Rome will change until the barbarians crash the gates and sack it.

Our Government is beyond the resucitations of moral individuals who wish to do good; it eats them alive or turns them into pantomiming zombies.

Kill the beast, don't feed yourself to it.


Fri, 04/15/2011 - 10:34 | 1172321 Debtless
Debtless's picture

Right now it seems there is much anger toward the machine. Though it's undirected and resides mostly in forums like this. Exposure of actual fraud, and illicit behaviors and motivations behind locked doors turned over to the people might create the needed focus for that outrage. As a patriot, I would intend to unlock those very gates for my fellows so time is not spent crashing them - but instead spent reforming the very system which has created them to keep people out. 

Fri, 04/15/2011 - 10:54 | 1172414 Nigh Eve
Nigh Eve's picture

I encourage you to run.  Our Senate and House will always have a need for "fresh blood", new attitudes, new ideas, etc.

Even if you don't win, your candidacy could still steer the political debate towards critical issues.

By running, you offer your constituency the chance to elect someone whose principles are, perhaps, better aligned with their own (as compared to the other potential candidates).

Good Luck.

Fri, 04/15/2011 - 10:58 | 1172450 Debtless
Debtless's picture

By running openly as a 'one-term only' it should help insure that my motives are NOW-TERM and i would hope that with initial support a story like this would spread fast via viral as well as mainstream media carries it. Thank you for the supportive words.

Fri, 04/15/2011 - 14:46 | 1173471 d_senti
d_senti's picture

I admire your sentiments, but I see two serious problems with your plan. The first is this: as you are running as a one term, reveal everything candidate, no one will include you in anything. The second is this: as you would clearly being acting outside of the two party mechanism, you wouldn't be privy to much of the politicking that actually takes place And you better hope there is nothing - and I mean NOTHING - shady in your past, or they'll eat you alive. Like I said, I admire your sentiments. And at least you're willing to act. I just think that your energies would be better spent elsewhere. Everyone already knows that Congress is a den of thieves. I'd say you'd do better to push for large change on a local or state level instead of minor change on a national one. Start a serious secession movement somewhere, get a place in the state senate and be a total dick about what they do, etc. It could get you the platform you want and is much more feasible or useful. I have other suggestions - think Guy Fawkes and the Fed :) - but I don't wanna write those out, haha.

Fri, 04/15/2011 - 14:46 | 1173472 d_senti
d_senti's picture

I admire your sentiments, but I see two serious problems with your plan. The first is this: as you are running as a one term, reveal everything candidate, no one will include you in anything. The second is this: as you would clearly being acting outside of the two party mechanism, you wouldn't be privy to much of the politicking that actually takes place.

And you better hope there is nothing - and I mean NOTHING - shady in your past, or they'll eat you alive.

Like I said, I admire your sentiments. And at least you're willing to act. I just think that your energies would be better spent elsewhere. Everyone already knows that Congress is a den of thieves. I'd say you'd do better to push for large change on a local or state level instead of minor change on a national one. Start a serious secession movement somewhere, get a place in the state senate and be a total dick about what they do, etc. It could get you the platform you want and is much more feasible or useful. I have other suggestions - think Guy Fawkes and the Fed :) - but I don't wanna write those out, haha.

Fri, 04/15/2011 - 08:40 | 1171854 RobotTrader
RobotTrader's picture

Looks like yesterday was the bottom.

Looks like they love this news, and the news out of BAC.

Time to load up on stocks.

Fri, 04/15/2011 - 08:47 | 1171869 Caviar Emptor
Caviar Emptor's picture

Hehe. Lemme see...earnings? The four horsemen of earnings tanked on their earnings releases: AA, JPM, GOOG, BAC. So let's see that's one industrial, two financials and a king of tech. Nice earnings season so far! Think I May (sic) take an early vacation and cruise around the world with my trading profits. See you in the fall!

Fri, 04/15/2011 - 08:53 | 1171898 tmosley
tmosley's picture

You're going to load up on STOCKS!!??

After that thrashing I gave you yesterday?

You learn NOTHING.  Time for your 8th bankruptcy in 5 years.

Fri, 04/15/2011 - 08:54 | 1171907 SheepDog-One
SheepDog-One's picture

So NOW Robo is calling a 'bottom' in stocks, therefore I guess youre buying stocks here? Youre a dweeb.

Fri, 04/15/2011 - 09:19 | 1172016 SheepDog-One
SheepDog-One's picture

Robo will wait to see if they walk up any stocks this morning, he'll post that chart, and insinuate he went long that. Same as every day.

Fri, 04/15/2011 - 09:20 | 1172019 LawsofPhysics
LawsofPhysics's picture

Let him load up.  If more of these guys do it it makes it a lot easier to hedge any losses in my silver and copper calls.

Fri, 04/15/2011 - 08:43 | 1171863 the not so migh...
the not so mighty maximiza's picture

System will collapse without QE3, they should let it die

Fri, 04/15/2011 - 08:43 | 1171867 RobotTrader
RobotTrader's picture

Where's all that "cost-push hyperinflation" everyone has been crowing about? McDonalds just lowered the price of Big Macs:  Two for $3.50 now in Los Angeles.

It's all good, Subways are still $5.00, and I can still get cans of Monster Energy and 32 oz. bottles of Gatoraid or Poweraid for 99 cents at Ralph's.

Fri, 04/15/2011 - 08:45 | 1171872 Ferg .
Ferg .'s picture

Robo what's with the change in avatar ?

Fri, 04/15/2011 - 08:51 | 1171888 RobotTrader
RobotTrader's picture

I promised lieutenantjohnchard that I would get rid of "catfish mouth" if silver passed $40.


Fri, 04/15/2011 - 08:54 | 1171902 tmosley
tmosley's picture

And yet you're still here.

Don't you have some dumpsters to rummage through?

Fri, 04/15/2011 - 09:52 | 1172140 Ferg .
Ferg .'s picture

Bring her back if it passes $50 !

Fri, 04/15/2011 - 08:57 | 1171916 SheepDog-One
SheepDog-One's picture

You eat Big Macs and drink Monster poison all day? No wonder your brain isnt worth a shit.

Fri, 04/15/2011 - 09:18 | 1171941 tmosley
tmosley's picture

And his mother washes his sheets, so he doesn't know about the increased cost of "protein-away".

Fri, 04/15/2011 - 09:02 | 1171951 juangrande
juangrande's picture

It seems inflation pressures on poison remain subdued. 

Fri, 04/15/2011 - 09:30 | 1172044 LawsofPhysics
LawsofPhysics's picture

Inflation/deflation is irrelevant.  Buying power is all that matters.  As a business or individual you will either have it, or you won't.  My business is certainly bringing our supply chains closer to home, the margin squeeze has been on since 2006.  This could be a good thing for equities, but only if everyone did this.  Look around, most companies are still outsourcing.

Fri, 04/15/2011 - 08:46 | 1171875 firstdivision
firstdivision's picture

Here is what the run up in food prices has started leading to, and prepare to see this more frequently

Fri, 04/15/2011 - 09:16 | 1172002 pazmaker
pazmaker's picture

Ahh.. that's why Compare Foods was running a special sale on Tomatoes!!  they got them dirt cheap!

Fri, 04/15/2011 - 08:51 | 1171880 snowball777
snowball777's picture

It's like they're personally fucking with John Williams at Shadowstats.

How cruel.

So this is what Paul Ryan's medical cost increases would be tied to, eh? (LOL)

Fri, 04/15/2011 - 08:51 | 1171897 RobotTrader
RobotTrader's picture

Mr. Williams should lay off the KFC, Dunkin Donuts, and Baskin Robbins and learn how to live in a junked out, 600 SF apartment overlooking Hollywood Freeway and learn how to live on $10/day worth of food like I do....LOL....

He must have an opulent lifestyle....

No wonder his costs are going up.  The price of Rolls Royces have probably tripled since the 2009 lows.

Fri, 04/15/2011 - 09:00 | 1171931 SheepDog-One
SheepDog-One's picture

With your trading, $10 a day is probably pushing your budget to the max.

Fri, 04/15/2011 - 09:40 | 1172074 snowball777
snowball777's picture

John's a big man...and a big man has a big ass and therefore a big gas-guzzling maybe his stats are skewed differently, but since his include the cost of gas with a higher weighting and since most anything in society costs more when gas does, I'm inclined to agree with him somewhat.

Like Silverlake? Or in Hollyweird proper? In another life, I used to live on Gower (near the Roscoe's Chicken and Waffles) and dodge the road-pissers on my walk to the towers.


Fri, 04/15/2011 - 08:59 | 1171928 waldocktrades
waldocktrades's picture

Commercial traders in the comodity markets are actually preparing for an early END to QE2. Their positions are growing increasingly defensive ahead of the April 26th fed meeting.

Fri, 04/15/2011 - 08:59 | 1171935 SheepDog-One
SheepDog-One's picture

Theyll probably do something like that, just to flush out all the complacent suckers and steal all their money.

Fri, 04/15/2011 - 09:02 | 1171942 Caviar Emptor
Caviar Emptor's picture


CONfused? Surprised? You shouldn't be. 

On the one hand Main Street's economy is still in a deflationary depression: unemployment jumped again this week from already high levels, incomes have declined in real terms for over 30 years, housing continues to decline with the pace picking up. And they're talking about cutting retirement benefits. So the consumer is constrained and higher input costs can't be easily passed on from businesses to the consumer.

But Are input costs up (inflating)? You bet yer boots: PPI came in hot this week! That means business margins will continue to get squeezed, bad for earnings. And we're seeing it already: revenue growth is poor to negative, margins are shrinking and the first 4 big earnings reports have provoked sell-offs. 

So you've got biflation. Input costs up, pricing power down. It's a terrible sign that CPI hasn't moved despite massive rises in raw materials. Don't forget that 40% of the CPI calculation is housing, and that's going down and hiding the rise in other areas of cost of living. 

But here's the final blow: the hidden cost of living not recorded in CPI is rising fast: insurance, healthcare, banking fees, credit card interest and penalties, checking account costs, closing fees, legal costs, cost of heating your home, cost of insuring and maintaining your home, municipal services (water, garbage...), security, telecommunications (wireless bills), cable and entertainment, transportation etc

Lotsa Luck!


Fri, 04/15/2011 - 09:06 | 1171959 SheepDog-One
SheepDog-One's picture

Everything is way more expensive, costs cant be passed along to the public because no one has any money. Pretty simple really, and a perfect storm for total disaster dead ahead.

Fri, 04/15/2011 - 10:39 | 1172341 sschu
sschu's picture

But here's the final blow: the hidden cost of living not recorded in CPI is rising fast: insurance, healthcare, banking fees, credit card interest and penalties, checking account costs, closing fees, legal costs, cost of heating your home, cost of insuring and maintaining your home, municipal services (water, garbage...), security, telecommunications (wireless bills), cable and entertainment, transportation etc

Thanks for the nice post.

I was reading about the inflation of the 60s and 70s (cannot recall source), and they pointed out in the same manner as you the destructive nature of inflation.  The free money approach drives up the costs of local services while squeezing the wages required to pay for these services.  Why does a lawyer cost $400 / hour to sue BP, but we quibble over paying someone $10 / hour to work in a factory somewhere? 

Of course it cannot be sustained, less so now than in the late 1970s as much of our manufacturing base has evaporated.  So today's squeeze is government workers IMHO.  The country cannot afford 22.5 MILLION people on the public payroll (not welfare or transfer payments, employees) and this has to be reduced. 

Massive layoffs and mal-investment liquidation in the private sector was the result when Volker decided enough-is-enough in the early 1980s.  Just who is going to get elected and keep their job today selling that we need 15 million fewer  government workers and they are handed pink slips?

They will print till the Von Mises end of the credit cycle, and we know where this leads.  It is unfixable.


Fri, 04/15/2011 - 09:03 | 1171947 usikpa
usikpa's picture

Seasonaly unadjusted CPI  - 1,0% month on month!

Core ex housing 1,39% y/y, up from 1,33%!

Fri, 04/15/2011 - 09:03 | 1171957 Caviar Emptor
Caviar Emptor's picture

Yup. Housing is over 40% of the calculation and that's pulling the headline number down, masking inflation in cost of living. 

Fri, 04/15/2011 - 09:04 | 1171949 unclebigs
unclebigs's picture

QE3 will come AFTER the stock market craters taking gold and silver along with it.  Those of you buying silver at $42.50 in anticipation of QE3 are going to be cremated.  LMFAO!!!!!

Fri, 04/15/2011 - 09:07 | 1171968 SheepDog-One
SheepDog-One's picture

Gold and silver is a hedge against monetary collapse. Anyone just buying and holding has nothing at all to worry about, the monetary system will collapse just a matter of time.

Fri, 04/15/2011 - 09:05 | 1171969 Caviar Emptor
Caviar Emptor's picture

...and then will set fresh records. As with QE1, and QE2. No sweat. 

And anyone not in gold or silver has lost money in terms of buying power. 

Fri, 04/15/2011 - 09:11 | 1171985 SheepDog-One
SheepDog-One's picture

In particular, Robotrader who is the only trader in america who has actually LOST money while holding gold, of course he bought some triple inverse gold mining stock or other....oh well keep dumpster divin Robo.

Fri, 04/15/2011 - 09:10 | 1171981 the not so migh...
the not so mighty maximiza's picture

Cremation would happen if you SOLD when the market craters.   Buying high & selling low you will always get cremated.

Fri, 04/15/2011 - 09:15 | 1171993 unclebigs
unclebigs's picture

Lots of homeowners sitting underwater are thinking just like you.  LMFAO!!!

Fri, 04/15/2011 - 09:18 | 1172003 SheepDog-One
SheepDog-One's picture

No problem for you though, apparently typing from a public library?

Fri, 04/15/2011 - 09:23 | 1172023 the not so migh...
the not so mighty maximiza's picture

homeowners sitting underwater and having metals in hand are two very differnt things.

Fri, 04/15/2011 - 09:05 | 1171952 Johnny Lawrence
Johnny Lawrence's picture

Key words in this report: seasonally-adjusted.

The gasoline index rose 5.6 percent in March after a 4.7 percent increase in February. (Before seasonal adjustment, gasoline prices rose 11.7 percent in March.)

Fri, 04/15/2011 - 09:09 | 1171972 SheepDog-One
SheepDog-One's picture

Couple that with oil companies saying demand is dropping off even at prices lower than $4. Once again, the price increases cant be passed along.

Fri, 04/15/2011 - 09:17 | 1171998 Caviar Emptor
Caviar Emptor's picture

...setting up a vicious cycle of inflating cost of living causing demand destruction and further deflation in the real economy. 

How can this defy the laws of supply and demand? Easy. The answer is the hand of the Fed, which bypasses supply/demand and bloats the paper economy in it's effort to artificially "reflate". But they only succeed in "reflating" one part of the economy while the rest continues to spiral down

Fri, 04/15/2011 - 09:46 | 1172102 topcallingtroll
topcallingtroll's picture

I have mixed feelings.

The healthcare bubble continues to need fed easy money policies to pay us.

Doctors and hospitals are getting to use the newly created money first just like the bankers.

I am ready for it to end. Even though it will probably hurt the litle people more than me.

An army of unemployed is necessary to control inflation per Marx.

An army of uninsured who cant get health care is probably the only way to reduce demand enough to control healrhcare costs.

Price controls and insurance price fixing sure didnt put us doctors on the short leash. We just say fuck you and boycott the ones who wont pay what we want. Demand destruction is the only way to control us.

Fri, 04/15/2011 - 09:04 | 1171962 nedwardkelly
nedwardkelly's picture

Any inflation index that ignores food + energy is completely useless. Even if you're so wealthy that you consider the costs of food and energy to be completely trivial and insignificant the percentage of 'consumers' to which theyre not is so great that you're a fool to ignore them.

Fri, 04/15/2011 - 09:10 | 1171978 SheepDog-One
SheepDog-One's picture

Yea what the hell is this shit, energy and food is not factored in? Thats fooling who? Whatever let them keep playing hidey seeky like kids its all goin down in a heap.

Fri, 04/15/2011 - 09:36 | 1172062 topcallingtroll
topcallingtroll's picture

The numbers jump around too much with food and energy included.

You wouldnt think it was accurate if someone grabbed an anomalous weekly emplyment number to say the economy is improving or crashing.

We can have huge volatility in food and energy over time that is.anomalous to the underlying trend.

If there is a temporary reversal in energy prices you wouldnt listen to us trolls saying inflation is defeated.

Nor do temporary spikes, no matter how uncomfortable to some, indicate sustained inflation.

Fri, 04/15/2011 - 12:56 | 1172966 SheepDog-One
SheepDog-One's picture

I see, it might confuse people if food and energy costs were actually calculated into inflation foctoring, so best just leave them out.

Fri, 04/15/2011 - 09:09 | 1171975 cat2
cat2's picture

Transitory, bitchez

Fri, 04/15/2011 - 09:11 | 1171989 Johnny Lawrence
Johnny Lawrence's picture

I will say that I really haven't seen any significant price changes at my local grocery store.  Maybe I'm missing it, which is certainly possible since I just walk along with my wife while she throws things in....but I don't see it yet on the items we usually purchase.

Fri, 04/15/2011 - 11:05 | 1172471 American Sucker
American Sucker's picture

Check the size of the packages.  The trick is to have a blow-off sale, like buy-one-get-one or 10-for-$10, then reintroduce the product in a 10% lighter package.  The foil salmon packs I eat with lunch went from $1.20 to $1.50, while the amount declined from 3 oz. to 2.6 oz.

Fri, 04/15/2011 - 09:19 | 1172005 Caviar Emptor
Caviar Emptor's picture

Declining housing at over 40% of CPI will continue to cancel out inflation in the cost of living.

Fri, 04/15/2011 - 09:27 | 1172034 topcallingtroll
topcallingtroll's picture

On average.

Your individual mileage may vary!<

A couch surfer paying no rent will notice noncore inflation.


Fri, 04/15/2011 - 09:19 | 1172007 AsIseeIt
AsIseeIt's picture


Fri, 04/15/2011 - 09:21 | 1172011 topcallingtroll
topcallingtroll's picture

I guess they dont inderstand statistics on cnbc.

Stevie boy cant seem to explain the benefits of looking at core versus noncore inflation.

Due to high volatility noncore inflation adds a lot of ups and downs to inflation data without adding to predictive ability of inflation numbers or tell us anything about pass-through which is the real issue. It is similar to why we average weekly jobless claims and not just grab one week of data.<

Anytime we can smooth out volatility we have a better chance of studying the underlying trend./p>

Fri, 04/15/2011 - 09:20 | 1172021 blunderdog
blunderdog's picture

There can't be any inflation.  My paycheck still sucks.

Fri, 04/15/2011 - 09:23 | 1172022 baconator3000
baconator3000's picture

Paid eleven dollars for a Bacon Deluxe combo yesterday. Eleven fucking dollars. I am now packing my own lunches

Fri, 04/15/2011 - 09:24 | 1172030 baconator3000
baconator3000's picture

also forgot to mention I eat wendys about once a month for yeaaaaars. This same meal used to be 5.99 in 2007

Fri, 04/15/2011 - 09:40 | 1172080 Jim B
Jim B's picture

BLS = Fraudsters = Phony numbers = Eat an Ipad2

Fri, 04/15/2011 - 09:21 | 1172024 topcallingtroll
topcallingtroll's picture

The qe3 door was closed a long time ago.

We are going to have to see real contraction first

Fri, 04/15/2011 - 09:24 | 1172028 PulauHantu29
PulauHantu29's picture

I am ready for QE66. Buy GLD, SLV and USO ...sit back and relax.

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