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US CPI Prints 0.3%, In Line With Expectations, Core Unchanged As Inflation And Deflation Offset Each Other
Overall a boring release, as the CPI print came in just as expected, with energy and gas contributing to the increase. Of course, with biflation now the topic du jour, where things needed are surging in price, and thing unneeded are plunging, it is only expected that the average won't change much. Overall, CPI came in at 0.3%, as expected, compared to 0.3% previously. Core CPI was at 0.0%, just below expectations of 0.1%... At least it was not outright deflation. Regardless, whatever the result would have been, it is bullish for the 4 people passing hot potatoes.
From the release:
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in August on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. (Before seasonal adjustment, the all items index increased 0.1 percent for the month.) Over the last 12 months, the all items index increased 1.1 percent before seasonal adjustment. The energy index rose in August and, as in July, was the primary factor in the seasonally adjusted all items increase. All major energy components posted increases, with the gasoline index being the main factor. The food index, which declined in July, rose in August. The food at home index was unchanged while the index for food away from home increased. The index for all items less food and energy was unchanged in August after increasing in each of the previous three months. This pattern mirrors the shelter index, which also was unchanged in August after rising in recent months. Posting increases in August were the indexes for medical care, used cars, and new vehicles, while the indexes for recreation and apparel declined.
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Expectations offset m'fers!
There is no inflation, nope... Everything is dandy. Please move along people.
good news! I assume housing was down?
biflation bitchez
Signs of deflation = More QE rally on
Signs of inflation = Ben's magic is working and get into equities for the inflation
Price stability = Recovery is taking hold and rally on
Spin me a story bulls. Sounds like you cannot lose..until you do.
I wonder if inflation is another of those economic measures that no longer has any meaning as a result of government interference. Our stupid government, noticing that demand causes inflation, decided that it could cause inflation and get demand. There are two kinds of inflation: the healthy kind that results from demand, and the unhealthy kind that results from loss of confidence in the currency. Our stupid government is diligently working to create the second kind, which, historically, strikes quickly and devastatingly. Until that happens, expect puzzling distortions in the economic metrics.
Anyone who has gone to the grocery store over the last few months have seen prices rising, # of sales 2 fo1 ect. declining,knows the real story. However, you can get a good deal on another flat screen T.V. You just have to tenderize them for a longer time.
"At least it was not outright deflation."
True, as measured. However,a caveat.
Long ago in a galactic cluster-fuck far away known as the Roaring '70s, a monster termed inflation ruled the land. And the CPI calculation included a numerical input based upon home prices. And what with Mr.Politician desiring to band-aideover the real inflation problem and report a more acceptable number, decided to address the symptom rather than the disease and took out the housing component and inserted (use your imagination with John Q Public bent over) something called "Owners equivalent rent."
Which was and still is essentially a fudge factor/plug estimate for at that time the Gubamint could claim rents to be "sticky and lagged" in an inflationary environment thereby biasing inflation (CPI) data downwards (more favorable) whilst Currently, again being "sticky and lagged", keeps the CPI data higher than would be reported had Home Prices been used instead.
So, my fellow human tiddly winks (played by the political Class) if it were not for that miraculous measurement of momentous import, we'd really be facing Deflation, Outright with the weightings components as is in the CPI.
(Which yet remains moot to the differential price pressures amongst fuel, food, porn and iPads, but that's another story for another time.)
Plan Accordingly.
Kroger's house brand boxed breakfast cereal was $1.80 a box 6 months ago. Now it is featured as a SPECIAL at $2.38 a box. Let's see, that's a bit over a 25% increase.
Look at this product:
http://www.google.com/products?q=snuggle+64&aq=f
I used to buy pallets of the stuff back in the early to mid 90's. A good, every day retail price was $1.19-1.29 (upper end was $1.49). A blow out price was $.90. Today the going price is about $3.00.
See shadow stats CPI vs. BS CPI:
http://www.shadowstats.com/inflation_calculator?amount1=129&y1=1993&m1=8...
Yup to biflation. Living in Florida, energy costs through the roof over the last few years. We are talking more than a 2x increase. Homeowners insurance up 3x-4x since 2004. Taxes, govt fees, etc. always go up - along with food. Healthcare costs (primarily insurance) always go up huge each year now.
Simple math... Income is down. Costs of having a roof over one's head, getting to and from work, eating, paying for critical insurances, etc. are up. What is left gets squeezed into oblivion. Not all at once though... little by little... stairstepping down.
Title should really read:
"...Core Unchanged As Inflation Generated Purely by a Complicit Bernanke Fed to Rape and Pillage Middle Class on Necessities such as Gas and Food, And Deflation in Equity and Everything of Value to said Middle Class, Offset Each Other"
Flat Screen prices are down. Doesn't that make up 50% of the CPI?
and they don't include gold and silver in the CPI,
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