Producer Price Inflation Higher On Spiking Food And Energy; Those Who Don't Eat Or Drive See No Price Increase

Tyler Durden's picture

In a country in which nobody eats or drives any more, the Fed construct knosn as September core PPI came in 0.0%, on expectations of a 0.2% increase. Of course, for those lucky few who still eat, or drive, or in rare cases eat and drive, saw Producer Prices rise by 1.1% on expectations of a 0.8% increase, which despite dropping from August's 1.7%, this was still the second highest monthly increase in the past year. Also, for those few who actually care about such trivia as food and energy prices, this was the 4th month in a row of higher than expected headline PPI. Luckily, in America, eating has now been hedonically adjusted to the functional equivalent of playing Apple's bestselling $0.99 iFood app.

From the report:

The Producer Price Index for finished goods rose 1.1 percent in September, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Prices for finished goods advanced 1.7 percent in August and moved up 0.3 percent in July. At the earlier stages of processing, prices received by manufacturers of intermediate goods rose 1.5 percent in September, and the crude goods index advanced 2.8 percent. On an unadjusted basis, prices for finished goods climbed 2.1 percent for the 12 months ended September 2012, the largest rise since a 2.8-percent increase for the 12 months ended March 2012.

Full report here.

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GetZeeGold's picture




NO inflation bitchez - Ben Shalom

Chump's picture

That's what I hear from a Keynesian relative I argue with occasionally.  And when I point out his lunacy when he complains about oil prices and rising grocery bills/smaller packaging he kindly lectures me that price increases are not inflation in "economic terms."  Oh well, once an economics professor, always an economics professor.

Clint Liquor's picture

God created Economists to make Weathermen appear reliable.

MachoMan's picture

So what is his explanation for the rise in prices? 

Chump's picture

Corporations are evil and "we" need to rein in rampant speculation in commodity markets.  But continued deficit spending and money printing to support "our" recovering financial system is his absolute first priority.

Our conversations lately have become...brief.

KK Tipton's picture

"Corporations are evil and "we" need to rein in rampant speculation in commodity markets."

Very "Venezuelan dictator". Nice.

"It's a great brainwashing process which goes very slow and is divided into four basic stages. The first one being "demoralization". It takes from 15 to 20 years to demoralize a nation. Why that many years? Because this is the minimum number of years required to educate one generation of students in the country of your enemy exposed to the ideology of [their] enemy. In other words, Marxism-Leninism ideology is being pumped into the soft heads of at least three generation of American students without being challenged or counterbalanced by the basic values of Americanism; American patriotism....

The result? The result you can see ... the people who graduated in the 60's, dropouts or half-baked intellectuals, are now occupying the positions of power in the government, civil service, business, mass media, and educational systems. You are stuck with them. You can't get through to them. They are contaminated. They are programmed to think and react to certain stimuli in a certain pattern [alluding to Pavlov]. You cannot change their mind even if you expose them to authentic information. Even if you prove that white is white and black is black, you still can not change the basic perception and the logic of behavior.

In other words [for] these people the process of demoralization is complete and irreversible. To rid society of these people you need another 15 or 20 years to educate a new generation of patriotically minded and common sense people who would be acting in favor and in the interests of United States society."


Just keep moving the dates..FORWARD SOVIET!

Clint Liquor's picture

Well said. Except the process is only complete in US Cities and not in the Rural areas of America. You can divide America by Rural and Urban and have all the political differences exposed.

Cathartes Aura's picture

dunno 'bout anyone else, but these words,

To rid society of these people you need another 15 or 20 years to educate a new generation of patriotically minded and common sense people who would be acting in favor and in the interests of United States society."

didn't conjure any warmFuzzies for me. . . the current crop of iKidz being squeezed through the system, and given call service answering ijobs by .gov as the interface between the behemoth and the serfs don't inspire much confidence that things will change for the better anytime soon.

maybe after de-moral-isation comes absolute surrender. . . and I don't think many folks here want to see any more "acting in the interests of United States society"

unless, of course, we get to fracture into smaller packets and can freely choose where to land.   ah, if only.

blunderdog's picture

As soon as someone invokes the term "Americanism," you can stop taking them seriously.  No one has ever had a clue what that word is supposed to mean--it's code for some kind of ethnic nationalism, but the USA doesn't have any identifiable ethnicity.

Ruffcut's picture

Eat less shit food. Beer is still holding its price and is a viable food source.


GubbermintWorker's picture

Cabernet is better for you and stores a lot longer than beer.

ATM's picture

I had a nice 2004 Groth last night chuckling along with Chompers McPluggs.

BeerBrewer09's picture

Beer is better for you than wine (it really is more nutritive), and can store just as long, provided it is the right kind of beer.

Read Grape vs. Grain by Charles Bamforth.

Chump's picture

Red wine hangover?  Ugh, just shoot me right in the face please.

blunderdog's picture

More calories in beer per dollar spent.

A sixpack a day and a can of tuna fish (in oil) would probably keep you alive for decades.  And if not, you won't mind much.

jekyll island's picture

It's been here a while already. Food price inflation has been masked by decreasing the package sizes while holding prices steady.

GubbermintWorker's picture

No, the package size has remained the same but the amount within the package is shrinking.  And in the case of coffee, the package and amount is shrinking but the price is increasing!

ParkAveFlasher's picture

The bitter irony of economists is that they don't realize how right they are.

If priced in gold, not much inflation to speak of.

krispkritter's picture

Actually I've seen 10oz coffee selling in 16oz bags; I held them up to each other and 10, 12, and 16oz(rare) are all the same. I suspect mfg's don't want to re-tool their packaging machinery or down-size packages while their competition sitting next to them on the shelf might appear larger in size. I expect that we'll soon get to the point where a package contains a scratch-and-sniff card inside; you buy it, sniff it, eat your gruel and dream of what once was real food...(ok, I'm exaggerating. A little.)

ATM's picture

It's called marketing. Not many people look at the amount in a bag, they simply look at the size of the bag. Same size bag must mean same amount of product, right?

Mark Carney's picture

You knnow, this may actually be beneficial.  Stay with me here, al those whales who think they are still eating that huge family bag of potatoe chips is actually esting lesss, thus they will loose weight and bring down all health care costs.....nah, sorry just dreaming there, in reality they will just be making more trips to store because they are still hungry.

TheCanadianAustrian's picture

Not quite. People will adapt and grab however many bags of cheese poofs they find makes them feel fulfilled as a human being.

blunderdog's picture

MANY years ago, like back in the '80s, they used to put 16 oz (by weight) of coffee in the coffee cans which now somehow manage to contain *11* oz of coffee.

I've never been able to figure that out.  How do you cram 11 oz into a 16 oz can?

Amazing, this packaging wizardry.

Cathartes Aura's picture

new improved coffee roasters add dryer sheets for FLUFFY-ness, volumicity!

ncdirtdigger's picture

One can only assume that one was expressed in weight, the other in volume.

LongSoupLine's picture

Even if you include food and fuel, it's still waaayyy fucking understated.

DougM's picture

My muscle car will not run on hedonics

LawsofPhysics's picture

Still trying to get a tatoo with chloroplasts in it.  That way I can finally be like our plants and just go sit in the sun when I need some more energy.

jekyll island's picture

Going green, bitchez! Why don't you see if Obummer will give you a gubmint grant?

LawsofPhysics's picture

Already looked, not covered by obamacare, but I hear that it is covered by romneycare, perhaps it is time to switch policies after all?

ATM's picture

you'll have to move to Mass and start wearing a baseball cap with the bill curled to almost touch itself. Bad trade off.

francis_sawyer's picture

Sunlight tax coming in 5...4...3...2... [sincerely, your local Congresscritter]

GMadScientist's picture

Ssshhh...if enough do, the CO2 issues solve themselves...

GMadScientist's picture

mix-in jellyfish DNA...charge by day...glow by night!

MachoMan's picture

Hopefully you don't need to touch anyone or someone will have to pee on the contact spot...

Cathartes Aura's picture

I hear some people pay good fiat for that service. . .

krispkritter's picture

Yeah, but when the hordes of 'locusts' show up, you're what's for dinner!

TideFighter's picture

I now know what my halloween costume will be:

Caloric restricted diabetic walking zombie.

GeezerGeek's picture

People have a very low glycemic index, therefore are perfectly suited to be food for diabetic zombies.

Dr. Engali's picture

Shoot there is plenty of room for Ben to print more. Screw the poor...let them eat roadkill we need our account statements higher by month's end.

giggler123's picture

Moving to a home for stroke victims, they don't let you drive and food is by drinking, no solids - I guess I'll be in the figures of non-affected persons... lol

toady's picture

People wonder why college grads don't own cars and live in mommy's basement. So they won't need to buy food or gas!

Who says a student with a liberal arts degree doesn't know anything!

Yen Cross's picture

It's a ZYNGA world in the Bernaks eyes.   Fuck Bernanke!

booboo's picture

"cat food or heat, cat food or heat, decisions, decisions, grab a sweater honey were going on our winter diet again and this year were going to beat those Cramtons to that tasty tree bark"

dwdollar's picture

In a nation of unemployed SNAP users this makes total sense.

odatruf's picture

Everyone eats and uses transportation, of course. What the headline means is that those who don't pay for their own food or transportation see no price increases.

And who might fit that description?  How about many of the decision makers in DC who attend events, receptions, dinners, etc most nights and have staff drive them from place to place?

Makes it all more clear, doesn't it?



AnAnonymous's picture

Everyone eats and uses transportation, of course.


Everyone human, that is.

Because, in some other realms of life forms, known by 'americans' as sub humans or non humans, some only know feet as transportation means and some other die from starvation, which tends to indicate that they do not eat that much.

But hey, it is an 'american' world, 'americanism' and the natural theory rights aims to serve human beings.

So quite good to claim that everyone in humanity eats and drive.

Cursive's picture

I've stopped driving.  The food and drink thing is a little harder.