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January Inflation Subdued Despite Biggest Jump In Electricity Prices In Four Years
The importing of Japan's deflation continues: in January headline consumer prices as well as prices excluding food and energy rose by 0.1%, in line with expectations, and down from a downward revised 0.2% in December. The annual increase in prices rose modestly from 1.5% to 1.6%, but still below the Fed's 2.0% target. The main reason for the increase? Why the polar vortex, and specifically soaring electricity prices as a result of the surge in nat gas. "Increases in the indexes for household energy accounted for most of the all items increase. The electricity index posted its largest increase since March 2010, and the indexes for natural gas and fuel oil also rose sharply. These increases more than offset a decline in the gasoline index, resulting in a 0.6 percent increase in the energy index."
Of course, H readers already knew this courtesy of our report on electricity prices charged by ConEd which as we showed yesterday soared to what may be an all time monthly high:
The headline monthly price increase has been in a range of 0.0% to 0.2% for the past 7 months.
Some other observations:
The index for all items less food and energy also rose 0.1 percent in January. A 0.3 percent increase in the shelter index was the major contributor to the rise, but the indexes for medical care, recreation, personal care, and tobacco also increased. In contrast, the indexes for airline fares, used cars and trucks, new vehicles, and apparel all declined in January. The food index rose slightly in January. The index for food at home rose 0.1 percent, with major grocery store food groups mixed.
The all items index increased 1.6 percent over the last 12 months; this compares to a 1.5 percent increase for the 12 months ending December. The index for all items less food and energy has also risen 1.6 percent over the last 12 months. The energy index has risen 2.1 percent over the span, and the food index has increased 1.1 percent.
The categories summarized:
Of note: in addition to the annual decline in commodity prices, the 0.3% drop in apparel prices over the past 12 months confirms that apparel retailers have zero pricing power and that anyone hoping for a rebound in the discretionary retail space, at least that not targeting the 0.01%, is in for a long wait.
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the fed loves this weather. cold in the east to boost energy prices and drought in CA will soon jack up food prices. afterall, deflation: "it cant be allowed to happen here".
I enjoyed that insight. Deflation is only for a grand reset, pre world war - not sure we're there just yet. Soon, though, it seems. Inflate until you no longer can, then war.
Good thing I dont need electricity, energy or food! Otherwise I would say, we have inflation!
Yep, utility costs are draining everyone's wallet. I do the grocery shopping. I've noticed food prices have jumped the last month significantly on most items. I would say at least 10% on average. Can't wait until summer driving season kicks in with higher gas prices. Then this fall it will be higher healthcare premiums courtesy of 0zer0care. 2014 is going to be brutal for consumers.
cattle/beef prices reaching historically record highs as well....but who's counting, right?
It's all FREE when you got EBT, bitchez!!!
http://www.agweb.com/article/cattle_prices_reach_another_record_high_NAA_Greg_Henderson/
Dog food - it will soon be what's for dinner (unless you grow your own food). Milk is approaching $4 to $4.50 a gallon in part because of the man made drought in CA.
California drought: Why farmers are 'exporting water' to China
Food prices soar as incomes stand stillHahahahaha!! Sure and pigs fly!
Why Is The Obama Administration Putting Government Monitors In Newsrooms?
http://newswatch.us/why-is-the-obama-administration-putting-government-m...
Ask George Orwell...
Monitors In Newsrooms?
Probably just to make way for the hunter-killers. Welcome to SkyNetTM.
If you're reading this.....you are the resistance.
Just like the old soviet union days when there was always a party member nearby just to make sure nobody went off script.
Because we have to be sure that every station is covering the latest twerking sensation...
In D'never CO, I've watched the price at the pump increase from $2.96 three weeks ago to $3.29 yesterday. curious kind of deflation. must be the "electricity". right?
Print all the paper promises you want. The calories available for consumption are what they are.
There will always be deflation in things that aren't neccessities and inflation in things that are essential. It's never 100% across the board up or down in all goods and services. RV prices will go down while fuel prices rise, etc.
I have an RV for sale ....
Darn that pesky food and energy. Don't the sheep know that they can save money by eating their hedonically adjusted iPad?
I'm sure they'll find that iDiot pads can be pretty tasty if you use enough Frank's Hot Sauce on them...that shit's great on everything!
Why even report these made up numbers? Go to the grocery store or the gas station or watch premiums rise on insurances and talk to me about inflation. At least I can buy a smart TV that will let's me access the internet (because i dont have enough devices that allow me to do that), or a refrigerator that orders me food stuff when I run out for less than last year. Please stop with the propaganda already.
Teevees are necessary for control and your daily dose of propaganda, and therefore must be made affordable.
I wonder what the 'official' inflation rate was in Zimbabwe ?
It's OK, when electricity prices go up, I can run my appliances on cheaper carpet.
Don't worry about that decline in gasoline prices last month... I'm paying 30 cents more per gallon now... and expect to see $4.00 by May.... but not driven by actual demand...
This is how the US will try to push off the economic collapse day... they will manipulate the 'inflation' figures so that the retiring boomers get 1.5% increases in their Social Security during times when actual inflation is closer to 10%... And they will keep interest rates on deposits and treasuries at suppressed levels so that there are no safe alternatives anywhere in the world... meanwhile the dollar erodes... and you end up with adding just 6% to the national debt, but with 10% real inflation it actually means you have CUT the national debt by 4%!!! Hooray!!!
These numbers from the government are politically generated, and little supported by the economic activity. How do I know? Gene Sperling the obama economic adviser says the a 30% increase minimun wages will be "absorbed" no economic consequences. He runs the offical line on the economy. It is fairy tale hour when he speaks up on anything. The Fed knows fiat wages are inflationary because it does not know what to do with deflaton. Therefore we can not have it.
Everythings rising in price...yet there's no inflation?
Inflation will not get out of control until the Fed starts raising rates. That's what really kicks off inflation every time. The inflation we are seeing now is simply corporate America extracting a little more flesh.
Daily double
Hedonics -- people are just switching to burning their furniture
Good analysis.