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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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Fri, 10/12/2012 - 08:44 | 2880856 GetZeeGold
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NO inflation bitchez - Ben Shalom

Fri, 10/12/2012 - 08:47 | 2880868 Chump
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.

Fri, 10/12/2012 - 09:44 | 2881105 Clint Liquor
Clint Liquor's picture

God created Economists to make Weathermen appear reliable.

Fri, 10/12/2012 - 09:58 | 2881151 MachoMan
MachoMan's picture

So what is his explanation for the rise in prices? 

Fri, 10/12/2012 - 10:41 | 2881645 Chump
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.

Fri, 10/12/2012 - 11:41 | 2881844 KK Tipton
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!

Fri, 10/12/2012 - 12:25 | 2882022 Clint Liquor
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.

Fri, 10/12/2012 - 14:13 | 2882368 Cathartes Aura
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.

Fri, 10/12/2012 - 20:38 | 2883594 blunderdog
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.

Fri, 10/12/2012 - 08:49 | 2880876 Ruffcut
Ruffcut's picture

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


Fri, 10/12/2012 - 09:21 | 2881017 GubbermintWorker
GubbermintWorker's picture

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

Fri, 10/12/2012 - 09:25 | 2881036 ATM
ATM's picture

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

Fri, 10/12/2012 - 09:30 | 2881064 BeerBrewer09
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.

Fri, 10/12/2012 - 10:45 | 2881662 Chump
Chump's picture

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

Fri, 10/12/2012 - 12:04 | 2881936 blunderdog
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.

Fri, 10/12/2012 - 08:50 | 2880879 jekyll island
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.

Fri, 10/12/2012 - 09:00 | 2880914 GubbermintWorker
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!

Fri, 10/12/2012 - 09:18 | 2880996 ParkAveFlasher
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.

Fri, 10/12/2012 - 09:22 | 2881025 krispkritter
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.)

Fri, 10/12/2012 - 09:26 | 2881044 ATM
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?

Fri, 10/12/2012 - 11:04 | 2881723 Mark Carney
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.

Fri, 10/12/2012 - 13:14 | 2882191 TheCanadianAustrian
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Not quite. People will adapt and grab however many bags of cheese poofs they find makes them feel fulfilled as a human being.

Fri, 10/12/2012 - 12:09 | 2881963 blunderdog
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.

Fri, 10/12/2012 - 14:20 | 2882387 Cathartes Aura
Cathartes Aura's picture

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

Fri, 10/26/2012 - 15:10 | 2922394 ncdirtdigger
ncdirtdigger's picture

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

Fri, 10/12/2012 - 08:46 | 2880861 LongSoupLine
LongSoupLine's picture

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

Fri, 10/12/2012 - 08:46 | 2880862 DougM
DougM's picture

My muscle car will not run on hedonics

Fri, 10/12/2012 - 08:46 | 2880863 LawsofPhysics
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.

Fri, 10/12/2012 - 08:52 | 2880890 jekyll island
jekyll island's picture

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

Fri, 10/12/2012 - 08:58 | 2880915 LawsofPhysics
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?

Fri, 10/12/2012 - 09:28 | 2881050 ATM
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.

Fri, 10/12/2012 - 09:31 | 2881066 francis_sawyer
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Sunlight tax coming in 5...4...3...2... [sincerely, your local Congresscritter]

Fri, 10/12/2012 - 09:13 | 2880973 GMadScientist
GMadScientist's picture

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

Fri, 10/12/2012 - 09:13 | 2880968 GMadScientist
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mix-in jellyfish DNA...charge by day...glow by night!

Fri, 10/12/2012 - 10:03 | 2881169 MachoMan
MachoMan's picture

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

Fri, 10/12/2012 - 14:21 | 2882395 Cathartes Aura
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I hear some people pay good fiat for that service. . .

Fri, 10/12/2012 - 09:23 | 2881033 krispkritter
krispkritter's picture

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

Fri, 10/12/2012 - 08:46 | 2880864 TideFighter
TideFighter's picture

I now know what my halloween costume will be:

Caloric restricted diabetic walking zombie.

Fri, 10/12/2012 - 09:12 | 2880967 GeezerGeek
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People have a very low glycemic index, therefore are perfectly suited to be food for diabetic zombies.

Fri, 10/12/2012 - 08:51 | 2880872 Dr. Engali
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.

Fri, 10/12/2012 - 08:48 | 2880873 giggler123
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

Fri, 10/12/2012 - 10:03 | 2881168 toady
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!

Fri, 10/12/2012 - 08:51 | 2880883 Yen Cross
Yen Cross's picture

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

Fri, 10/12/2012 - 08:52 | 2880894 booboo
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"

Fri, 10/12/2012 - 09:33 | 2881074 francis_sawyer
francis_sawyer's picture

catfood icecubes...

Fri, 10/12/2012 - 08:53 | 2880895 dwdollar
dwdollar's picture

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

Fri, 10/12/2012 - 08:53 | 2880899 odatruf
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?



Fri, 10/12/2012 - 09:41 | 2881095 AnAnonymous
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.

Fri, 10/12/2012 - 08:53 | 2880901 Cursive
Cursive's picture

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

Fri, 10/12/2012 - 08:55 | 2880904 docj
docj's picture


Fri, 10/12/2012 - 08:57 | 2880911 CoyoteBlue
CoyoteBlue's picture

Well, I have been losing weight.

So I've got that going for me.

Fri, 10/12/2012 - 08:57 | 2880912 Meesohaawnee
Meesohaawnee's picture

i still have this funny feeling or "look" that a imeltdown will be the story at 3 but i know nothing so take it with a grain.

Fri, 10/12/2012 - 08:59 | 2880919 GubbermintWorker
GubbermintWorker's picture

*sigh* I cannot convert my fiat into gold and silver fast enough!

Fri, 10/12/2012 - 08:59 | 2880920 Perdogg
Perdogg's picture

What about clothing? I guess if you are a nudist with a bicycle who grows your own food, life is good.

Fri, 10/12/2012 - 09:12 | 2880965 fuu
fuu's picture

Where the nudist, biker, farmer girls at?

Fri, 10/12/2012 - 09:19 | 2881004 GMadScientist
GMadScientist's picture

Cleaning their bike seats and riding something bigger than a chimp?


Fri, 10/12/2012 - 09:26 | 2881039 krispkritter
krispkritter's picture

Riding a what?!?

Sat, 10/13/2012 - 00:26 | 2883973 MeelionDollerBogus
MeelionDollerBogus's picture

#winning icon-reply

Fri, 10/12/2012 - 09:26 | 2881043 johnQpublic
johnQpublic's picture

i have one on my block


but she is at least 55

nice enuf body though

Fri, 10/12/2012 - 09:00 | 2880923 ziggy59
ziggy59's picture

No problem for me since I fast 3x daily...

Between breakfast and lunch
Lunch and dinner,
Dinner and breakfast...

Fri, 10/12/2012 - 09:01 | 2880925 ZeroPoint
ZeroPoint's picture

My grocery bill is up 35% from a year ago.

Fri, 10/12/2012 - 09:11 | 2880961 GubbermintWorker
GubbermintWorker's picture

Ours is down 35% from a year ago. Oh, yeah, my son moved out! Damn he eats a lot!

Fri, 10/12/2012 - 09:13 | 2880975 BudFox2012
BudFox2012's picture

Just a quick question - how did you come up with that exact number, or is that a guesstimate? I don't doubt it's general accuracy, I've just found it hard to nail down that number myself because of all the variables.

Fri, 10/12/2012 - 09:26 | 2881042 ZeroPoint
ZeroPoint's picture

It is an estimate. I do write down the grocery bill each week. I haven't done the exact math for the year, but it's been consistently 25-35% more for at least 5 months each week.

Fri, 10/12/2012 - 10:09 | 2881201 MachoMan
MachoMan's picture

Your credit card company usually sends a year end statement with a breakdown, by class, of expenditures made during the calendar year.  If you shop at the grocery store with your credit card, then you probably have a total amount spent for the year by category and vendor...  obviously if you shop at a general store for your groceries (walmart), then the data might be skewed by general household purchases, but it will probably be a decent approximation.  [those other common items are increasing in price as well].

Fri, 10/12/2012 - 09:08 | 2880933 BudFox2012
BudFox2012's picture

Wait until the spike in meat prices takes effect from this summers drought. We'll all be eating pink slime sandwiches for dinner

Fri, 10/12/2012 - 09:11 | 2880960 RSloane
RSloane's picture

I was going to say my husband's meat spikes every night, but I'm too dainty for that.

Fri, 10/12/2012 - 09:20 | 2881015 GMadScientist
GMadScientist's picture


Fri, 10/12/2012 - 09:21 | 2881019 BudFox2012
BudFox2012's picture

Don't be shy - a dirty mind is a terrible thing to waste

Fri, 10/12/2012 - 09:04 | 2880939 youngman
youngman's picture

Well this means those on Social Security should not get a CPI increase this inflation in that dog food is going up....but the actual dog is available...ask the Chinese guy living close to you..he will get you some...

Fri, 10/12/2012 - 10:13 | 2881225 Lloyd_Xmas
Lloyd_Xmas's picture

It getting more expensive to fatten up my dog for thanksgiving.

Fri, 10/12/2012 - 12:37 | 2882060 GubbermintWorker
GubbermintWorker's picture

No shit! Dog and cat food has skyrocketed!

Fri, 10/12/2012 - 14:29 | 2882427 Cathartes Aura
Cathartes Aura's picture

keep checking the ingredients in the pet foods - the dry stuff is under attack from corn gluten, soy derivatives, all kinds of "padding" that will add padding to the animal - grain-free foods recommended, the spike in dog/cat diabetes is telling.

Fri, 10/12/2012 - 09:04 | 2880940 Lloyd_Xmas
Lloyd_Xmas's picture

How come Keynesian never refer to this Keynes's quote. "By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.  By this method, they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some....."

Fri, 10/12/2012 - 09:15 | 2880986 kralizec
kralizec's picture

Because they are Neo-Keynesians...out with the old...

Fri, 10/12/2012 - 09:20 | 2881009 GeezerGeek
GeezerGeek's picture

Wasn't it Nixon who said "We're all Keynesians now"? Was he simply referring to economics, or was he secretly saying that his administration was into the secret confiscation of wealth? And isn't it curious that just a few years later it once again became legal for Americans to own gold.

Fri, 10/12/2012 - 09:40 | 2881094 docj
docj's picture

There was never much "secret" about it.

Fri, 10/12/2012 - 09:09 | 2880951 sbenard
sbenard's picture

Tap the heels of your ruby red slippers together three times, and repeat three times, "There IS no inflation, there IS no inflation, there IS no inflation!"

...and then you wake up!

Fri, 10/12/2012 - 10:05 | 2880979 fuu
fuu's picture

You would get better results clicking the heels of your silver slippers together. Stupid Hollywood. As a bonus it is on sale this morning.

Fri, 10/12/2012 - 09:11 | 2880962 rajc
rajc's picture

"Those Who Don't Eat Or Drive See No Price Increase" => Like Mark Zendy ...he gets driven around :) 

Fri, 10/12/2012 - 09:18 | 2881002 GMadScientist
GMadScientist's picture

Doesn't even have to leave his boudoir for that. <rimshot>

Fri, 10/12/2012 - 09:23 | 2881028 GeezerGeek
GeezerGeek's picture

I wish that property taxes and insurance were in the bucket of goods that haven't gone up. It's not only food and fuel that are rising.

Fri, 10/12/2012 - 09:14 | 2880977 kralizec
kralizec's picture

Oh, good.  So the Borg's are OK then, whew!


Fri, 10/12/2012 - 09:15 | 2880987 GMadScientist
GMadScientist's picture

Hey look, the playing field is sloped on both sides.

Fri, 10/12/2012 - 09:23 | 2880997 dolph9
dolph9's picture

"Inflation" is low, just like "unemployment" decreased.

The key part of understanding this is that these words no longer have accepted definitions.  They are political...they are whatever the government tells you they are.

That was always going to be the danger, wasn't it.  The English language is so dynamic and flexible that ultimately anything can mean anything.  Just like the Clintonian "it depends on what the definition of is is."

It was always the fate of America to drown in bullshit, bullshit created as a result of our inability to agree on what anything means.  Orwell wrote about this a long time ago.

Fri, 10/12/2012 - 09:21 | 2881021 Stuck on Zero
Stuck on Zero's picture

Let's add to that list: don't eat, don't drive, don't pay taxes, don't pay tuition, and don't have medical insurance.

Fri, 10/12/2012 - 09:26 | 2881047 Rip van Wrinkle
Rip van Wrinkle's picture

So by my calculations and based on the above figures, food inflation over the last 12 months is 2.25%.


Now I'm in the UK. If you in the US are getting food at 2.25% more than this time last year, any chance of sending a food parcel over and I'll pay the postage.

Fri, 10/12/2012 - 09:35 | 2881080 Chupacabra-322
Chupacabra-322's picture

Eat shit and Fart Methane. 

Fri, 10/12/2012 - 09:44 | 2881106 Bicycle Repairman
Bicycle Repairman's picture

I'm shoving food in my gas tank, so double plus good.

Fri, 10/12/2012 - 09:47 | 2881111 hangemhigh77
hangemhigh77's picture

So what's the point? Are they trying to tell us that people need food? You're kidding? That's lame. Was it Rockefeller who told a 6 year old starving girl,  "Eat dirt if you can't afford food" That's wisdom.

Fri, 10/12/2012 - 09:47 | 2881112 AnAnonymous
AnAnonymous's picture

Yep, dont forget: 7 billions people are competiting over the same resources as 'americans' say.

That of course includes those who do not compete, that is those who do not drive or sometimes do not eat. Cause it has to be a human kind problem.

Ben Bernanke, master chief to preserve the US american middle class. What a faithful and zealous servant.
Massive shakedown, brace yourself, those who remain sitting on the branches will be 'american' middle class.

For the others, well, welcome to an 'american' world, fine as fine when you sit on the right side of it, not that fine when you are on the other side. But those unlucky to lose grip will have time to figure that out.

Sat, 10/13/2012 - 00:21 | 2883965 MeelionDollerBogus
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