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US Inflation Jumps To Highest In 7 Months
Producer Price Inflation data soared higher than expectations across the board this morning with Final Demand up 1.4% YoY (against 1.1% expectation) to its highest since Aug 2013. The main driver was food and apparel prices (rather unexpectedly) but we also note that ex-Food-and-Energy was a 0.6% rise (vs 0.2% exp.) which is the biggest month over month jump since March 2011.
Final demand services:
The index for final demand services rose 0.7 percent in March, the largest advance since a 0.8-percent jump in January 2010. In March, over 60 percent of the broad-based increase can be traced to margins for final demand trade services, which climbed 1.4 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand services less trade, transportation, and warehousing increased 0.4 percent, and the index for final demand transportation and warehousing services rose 0.5 percent.
In March, MoM Ex Food and Energy surged (well above expectations) thanks to a 3.3-percent increase in margins for apparel, jewelry, footwear, and accessories retailing led the advance in prices for final demand services.
Final demand goods: Prices for final demand goods were unchanged in March after moving up 0.4 percent in each of the prior three months. In March, a 1.1-percent increase in the index for final demand foods and a 0.1-percent rise in prices for final demand goods less foods and energy offset a 1.2-percent decline in the index for final demand energy.
Product detail: In March, advances in the indexes for pork; residential natural gas; pharmaceutical preparations; sausage, deli, and boxed meats; and fluid milk products offset declines in prices for gasoline, diesel fuel, liquefied petroleum gas, primary basic organic chemicals, and fresh fruit and melons.
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Because Obamacare!
Fucking resign already Obozo!
Like your Un-health Secretary just did!
Gotta love salary deflation/stagnation and massive consumables inflation. Thank your government for this shit. All the money from the rest of the country is being sucked into the major cities like NYC and DC in the form of carpet baggers coming in and buying up local real estate driving the price up for the natives. We have given up all hope of affording a SFH in the DC burbs in a neighborhood that is not overrun with illegals and section 8 shitheels.
DON'T WORRY!! INFLATION IS GOOD FOR YA!!
yellen just wet her panties. and then shit her pants in realization she cant keep printing like a drunken Econ PhD....
There's a pill for that.
cyanide?
I take another victory lap as biflation rears it's head yet again: Input costs rising for both consumers and business. Pricing power? End demand? Don't make me laugh
It's fascinating to see yields collapsing as we get roasted by inflation.
And gold being smashed because higher inflation means less room for QE...! The Rigg-ulators are at work again.
Indeedy. Fed has distorted all the usual feedback mechanisms, so you can get inflation within a deflationary setting
its all devaluation to me. the more they print the less its worth.
my real money is cool calm and collected, as shiny as ever.
Extremely painful way to die. The potassium cyanide salt that is ingested mixes with stomach acid (HCl) to produce HCN and KCl. HCN is a gas but enters the body through the digested tract and through the lung by burping. The cyanide anion complexes to hemoglobin 17 times more effeciently than oygen thus displacing oygen and not allowing the heme to participate in the oxygen cycle for metabolism.
Very painful way to die. Just take a handful of acetominophen, also a solid oral dosage form. Die of liver failure.
whats the best way? you sound like an expert. just wondering.
Yeah, it helps grow our government! What could go wrong?
It means jobs!
/fucking moron
Inflation is good for you?
If you get to be the one issuing the currency, it's HEAVEN SENT!
Then we best hurry on out and buy some shit before the price goes up....bullish!
...so prices probably rose 10% month-over-month, in actuality, and this is likely to kill company profit margins.
Rock please meet Hard Place
Well done, Ben, Janet, Obummer, and the rest of you fuckin idiots
They are not idiots. They are criminals. Anyone who says otherwise is either an idiot or troll.
technicnally they're both...but I digress.
You ain't seen nothing yet! Never before has mankind diverted such a large percentage of wealth into intangible products or goods and made the claim this is the primary reason that inflation has not raised its ugly head. Bottom-line much of what happens in our economic future depends on inflation or deflation. The modern economy that has evolved over the last several decades is loaded with interwoven contracts reeking of contagion. I contend that if faith drops in these intangible "promises" and money suddenly flows into tangible goods seeking a safe haven inflation will soar.
Like many of those who study the economy I worry about the massive debt being accumulated by governments and the rate that central banks have expanded the money supply. The timetable on which events unfold is often quite uneven and this fact supports the possibility of the following bizarre scenario. A key issue is one of timing. If the price of gas jumps to $8 a gallon overnight do you buy gas and not make your car payment? Answer, it could be months before your car is repossessed so you buy gas. It is important to remember that debts can go unpaid and promises be left unfilled. The article below delves into how and why inflation may bring economic chaos.
http://brucewilds.blogspot.com/2014/04/inflation-seed-of-economic-chaos....
A little strong today, is the end near for you and you just have to get it out?
Very well said. But you did not include off balance sheet accounting and counter party quality review.
For that is what Central Banking is all about. And that is what China and Japan are in the monetary relationship to the US.
Refer to a real life example of intangible valuation and off balance sheet accounting. Look at Enron and its Raptors. All works well for a time. Counter party relationship is viewed as independent and solid and accepted by the public.
Then real life proper valuation of intangibles occurs (debt quality, equity value) releases the contagion. Poof, the system collapses of its own weight.
Price inflation along with monetary deflation bitches.
Unpossible.
Obama certified unperson, substitute Bush. (Whoosh!)
IT is happening
And a couple days ago we learned that the average person still pays more in TAXES than they do for food, shelter and clothing combined.
Something f-ed up with that!
What inflation, gasoline was $3.49 yesterday, same today. No change in egg or milk price either. All is fine
Wait until it's 3.49 a liter...Look! A squirrel!
Can we call it prices not inflation. Most mis-used term ever.
Only little people worry about inflation. If they can't afford food, they should take a payday loan. If they don't have a job, they should pawn their jewelry. If they can't pay for their house they should rent an apartment, if they can't use credit they should use Rent-a-Center. If they can't affort to rent they should live in a station wagon, if they can't afford gas they should collect cans and lose the car. If they use a shopping cart they should be arrested and thrown in prison, preferably a privatized prison where they can be put to work. We should charge them room, board, healthcare. Just let them run a tab until they can pay for the arrest and expenses the cost of which is going up all the time, with inflation and all.
Absolutely! There is no reason to worry about diminished or lost earnings as long as credit is available. How much would you like to borrow? Just sign here, right below your kidney appraisal.
They should have thought about that before they chose a life of crime!
"Oh great! The world is now blessed out of low-flation!"
/sarcoff
#peakstupidity
Bullish!
What inflation? I pay the same price for my 12 Oz. bag of coffee that I paid for my 16 Oz. bag last year. There is no inflation.
I'm waiting for bacon to be sold at the old 16(now 12) ounce prices but by the individual strip. Now that's progress...
Get used to it.SoP in third world countries is to buy singles of everything,
from cigarettes upwards. P & G etc are now selling their 3rd world package sizes in
Europe and the USSA.
Just another derivation of "chained" inflation.
Mix in 4 ounces of cat litter and you'll never know the difference. Plus you can just clean the clumps out of the filter and re-use it to save money and help pay for your obamacarefairshare.
** used cat litter provides for a more rich, exotic coffee flavor.
And Arabica versus Robusta too.
http://www.bloomberg.com/news/2014-03-06/arabica-robusta-premium-at-2-ye...
Apparel for sure. Has anyone looked at the prices of Nike NFL jerseys or Addidas MAN jerseys lately. $300 !!!!!
And yet, there were no pay increases for the laborers in the Chinese sweatshops.
Did it snow in China. Maybe its the weather there too.
I'm sorry, but who in the hell pays $300 for a fucking jersey? We have a shitty economy, yet they can get $300 for something that it cost $5 to make.
Idiots pay that thinking they got it made, but even smart people can get delusional. Visiting my normally sane old man a few months back, he asked if I needed any T-shirts. I asked why, and he said he bought some nice T-shirts a few weeks back for $50 each. I asked to see them, and they were standard fucking T shirts, nothing special, but purchased at an "upscale" store. I let him know I was all set with T-shirts, and that he was a fucking idiot for paying $50 for an $8 T-shirt.
Same guy who buys an Escalade with a sub prime loan and parks it on their front lawn, got to be a baller yo.
Thats sports shit apparel. Idiots who buy that crap should be victimized.
Visit a Harley dealership. $30 for a ladies ball cap, $80 for a sweatshirt. There's money out there or they wouldn't be asking these prices. ($42,000 for a loaded Ultra - WTF)
True, used prices are up too but likely because sub prime auto loans are flowing. Can't wait for Ally to go bankrupt again.
People are desperate for idenity. Will pay to avoid themselves. Plus there isn't any merchant money in self discovery.
Fuck the National Felons League marketing trash and idolatry.
Very significant especially since the Yuan has been dropping.
if you eat the packaging the food came in you will get your moneys worth
BLM fracking racket exposed! Armed siege and cattle theft from Bundy ranch really about fracking leases
He does claim to hold the grazing and water rights under Nevada law – the view, I think, is that the revision in 1993 (by the Feds) has no legitimacy.
http://famguardian.org/Publications/PropertyRights/origprop.html
So it's NOT about saving some turtle which cows aren't known to eat or trample on purpose! Who knew!!
Wunderbar German bologna index... $2.49/lb @ Ahold aka Stop & shop. Inflation unchanged.... All good.
Higher prices = more tax revenue. Everything working acording to plan.
Considering the trillions printed, shouldn't inflation be double digits, at least?
When the money gets out of bank reserves look out for triple digits.
When formerly useful petrodollars come home to roost, look for quadruple digits.
We won't see the major effects of the trillions printed until the banks start lending and the fractional reserve "money" creation hit the markets. Right now the trillions printed are reserves in the banking system. What we are seeing is the effect of is the world's repudiation of the dollar. That is where the real danger lies.
Wait till they start taking some of the trillions out of the market!
#WINNING!
Inflation (real and reported) being up, think how much more that will be when interest rates begin to rise.
So we have:
Markets down on the year - check
Inflation Up- check
manufacturing down- check
Government spending and entitlements Up- Check
Real wages for the majority Down- Check
Food costs and prices Up- Check
Homicidal/Suicidal Government- Check
Until recently, figured this shit show would take some time to unravel.. I'm thinking we're in for a hell of a ride this year. Wheres my damn helmet
Are we going to have actual inflation at 7% and the 30 year bond at 2.3%...seems like it to me....food is where the inflation will show up...its looking like a bad food year the world over..Brazil...California...Mexico...all having bad years...and cattle and pork production is all screwed up...with drought and disease
Pabst Blue Ribbon you serfs...24 pack for $12.99..that's 48 beers for just $25 bucks. Shit Mongo could have drink for like 2 or 3 days!
It got a blue ribbon for god sake so it must be good!
This beer has acceptable levels of vomitoxin, look it up; vomit toxin!
What you mean? You've got aaaalll them fat pigs over J-street...you have unknown resource for Bacon people, and I bet the pleasure would be just as good as real Miss. Piggy!!
If PPI excluding food and energy is up that much, imagine it with food and energy. Gas is up about 8% in just the past 30 days, and YoY food is probably up 15%.
But ... there is no inflation. I know because they said so on CNBC.
BLM fracking racket ?? The $1.27 million in leases discussed in the article wouldn't pay for a couple days of one of Moochelle's vacations.
Really? Wait till russia/china ditch the petrodollar. A gallon of oj will cost 15 bucks, same goes for milk, and keeping everyones tummies from ulcerating due to a lack of food will force obama to distribute food credit cards for everyone. Thank heavens for the federal government looking out for us! I hope they manage even more areas of my life! Wahooo!
Time to pack up and leave this shithole if ya can!
come to Europe, we still got places you can get "some" for a buck...Albania is a good start...the trick is to surive the first 36 hours.
Inflation is good because it helps people get out of debt. When your food and energy bills double, this leaves less money at the end of the month to pay down your debts. Not being able to make any additional debt payments makes the debt go away faster.
There is no inflation here. /sarc
Fucking scam artists.
Yeah! Finally we're gettin' higher prices! Thanks good right?
YES!!! I was so scared of deflation but now that I can pay more for everything I'm jumping for joy!!!
Wait, it gets better. If you can delay your consumption a little longer you can enjoy even moar expensive prices!
"Did I do that?" ~Janet Yellen in her best Urkel voice.
Can I walk in to Walmart and McDonalds and ask to pay just 1.6% more than their prices from a year ago?
Up my FAFSA. Yellen MothaFucka.
And this despite the fact that there's no inflation!
"Why, anybody can have a brain. That's a very mediocre commodity. Every pusillanimous creature that crawls on the Earth or slinks through slimy seas has a brain. Back where I come from, we have universities, seats of great learning, where men go to become great thinkers. And when they come out, they think deep thoughts and with no more brains than you have. But they have one thing you haven't got: a diploma."
Therefore, by virtue of the authority vested in me by the Universita Committeeatum e pluribus unum, I hereby confer upon you the honorary degree of Th. D.
If you remove cows then there is no inflation.
Your favorite breakfast cereal sold in 10 x 15 envelopes, it's coming. And the gum chewing public still won't notice because the price didn't change.
Why does anyone believe the inflation data we are offered?? The government uses data that has doubtful origins- wholesale prices, god knows what the retailers do to prices; this data is used to prove that the FED has nothing to worry about in its FOMC edits, when we (and they) know that the taper process is pushing prices up by simple mechanics. they just don't when. Will, they have been wrong on timing (Dr. Yellen's fault). It was only a guess in any case. ZH needs an Editor who know when to by pass junk mail.