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CPI Rises 2.0% From Year Earlier, Most Since June: Meat Prices Soar Most In Over A Decade
The CPI headline print of 0.3% for April came just as expected, rising from 0.2% in March and the highest sequential increase since June of 2013. It was also in line with expectations. The CPI ex-food and energy rose 0.2% and up 1.8% from a year ago, both just modestly higher than expected.
Visually:
The breakdown shows why April inflation wasn't even higher: energy service prices tumbled by -1.9% driven by a 2.6% drop in the price of electricity. On the other hand food prices refused to decline in line with what the PPI disclosed yesterday.
However, when drilling down into the food prices we find the following reveleation:
The food index rose 0.4 percent in April. The index for food at home, which rose 0.5 percent in both February and March, increased 0.4 percent in April. The index for meats, poultry, fish, and eggs rose 1.5 percent in April and has increased 3.9 percent over the last three months. The index for meats rose 2.9 percent, its largest increase since November 2003. The index for fruits and vegetables also continued to rise, increasing 0.7 percent. The dairy index also rose in April; its 0.5 percent advance was its sixth increase in a row. In contrast to these increases, the index for other food at home declined 0.2 percent, and the nonalcoholic beverages index declined for the fourth month in a row, falling 0.1 percent. The index for cereals and bakery products was unchanged in April. The food at home index has risen 1.7 percent over the past 12 months, with the index for meats, poultry, fish, and eggs up 6.4 percent over the span, the largest increase among the major grocery store food groups. The index for food away from home rose 0.3 percent in April, the third straight such increase, and has increased 2.2 percent over the last 12 months.
How about other hedonically-adjusted prices?
The index for all items less food and energy increased 0.2 percent in April, the same increase as in March. The shelter index, which rose 0.3 percent in March, increased 0.2 percent in April. The rent index increased 0.3 percent, the index for owners’ equivalent rent advanced 0.2 percent, and the index for lodging away from home rose 0.4 percent. The medical care index rose 0.3 percent in April, with the indexes for medical care services and medical care commodities both increasing 0.3 percent. The index for airline fares rose sharply in April, increasing 2.6 percent, its largest increase since November 2009. The new vehicles index increased 0.3 percent in April, and the index for used cars and trucks rose 0.5 percent. The recreation index, which declined in March, rose 0.2 percent in April. The tobacco index rose 0.1 percent, the same increase as in March. The indexes for apparel, for household furnishings and operations, and for personal care were all unchanged in April. The index for all items less food and energy has risen 1.8 percent over the last 12 months. This figure has remained in the range of 1.6 percent to 1.8 percent for 13 months in a row. The shelter index has increased 2.8 percent over the last 12 months; this figure has been trending upward. The medical care index has risen 2.4 percent over the span. The new vehicles index has risen 0.4 percent, while the index for used cars and trucks has advanced 0.2 percent.
And since US consumer disposable income is lower than most of these annual increases, it is increasingly becoming clear that aside from meat, airline travel, shelter and medical care, which are getting ever more unaffordable, US households have never been able to buy as many LCD TVs as they can now.
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I like meat...
But there is no inflation. There is deflation. Gold is at below $1,300s and the LT treasuries are still in a bull market!
Looked at a 2 pack T-bone steak at Sams yesterday.....$35.
I was like.....when the hell did that happen?
See that's the problem right there. A rich bastard like yourself can afford T-Bones. We won't be happy until you are eating 70/30 ground "beef" in your hamburger helper like the rest of us working proles.
Do you take yours with a side of rBGH?
"I don't know why they call this stuff hamburger helper. It does just fine by itself, huh? I like it better than tuna helper myself, don't you, Clark?"
My grocer is only going 73% lean, well that was last month...
>>eating 70/30 ground "beef"
neigh, neigh, u look alright from over here, it's been 100% horse for some time
Ha! Bought 5 porterhouse steaks on Sat for grilling. Ran me $110! But oh man, were they good!!!
Well this explains why I hardly see any road kill lately.
And I bet the pigeon population is in decline as well now.
Horse meat is also being seen on more menus.
A lot more of my neighbors are raising chickens too.
soylent green soon on sale at a corner store near you.
Pretty soon the animal shelters will start being more dilligent on who they give away strays to.
pods
Should help with the stray cat over population problem. I hear they are good in a stir fry.
Hey, what's the problem with horse meat? It's really yummie!
I love those grill marks on that steak.
Umm, those aren't grill marks.
pods
The dogs in my neighborhood are vanishing at a rapid pace. Maybe now I know why. The wife is morally opposed to eating dog, so we've been settling for BBQ'd rat. It's not so bad the 10th time you eat it.
A few weeks back I placed an order for a 1/2 side of beef. Works out to about $4.50 a pound after processing and packaging is factored in (quick-frozen for delivery). All natural, nothing else. Our last 1/2 side is just about used up, and went down great. Taking delivery in mid-June, just in time to really kick the grilling season into high gear. Beef, it's what's for dinner!
The Fed needs to start naked shorting meat futures like they do with gold futures so all the famers can go out of business like the miners. LOL. It will be just like the soviet union where there was an offical low price and empty shelves. The only thing they are doing right is subsidizing farmers on the back end for the rigged prices and induced losses they have already been setting.
I guess it's time to take meat out of the CPI formula.
I posted this on the Wallmart story. A rural ky towns Iga has sales every so often and folks from cincy Louisville ind etc drive all the way down there. Ribeyes 3.48 burger 1.99 lb. I loaded up. Folks are buying bulk to save when they can. That town is big Amish farm country
Yep, rising prices have become so obvious you have to laugh at the Federal Reserve's comment about tame inflation.
The Fed is stuck. The BS only last so long.
maybe inflation means that their "investments" are doing well and deflation means they're in the hole?
Please allow me to make an attempt to cut through all the bullshit and concisely state what is going on....
The FedGov paints the numbers to suit their desired policy.
Think about it. The Feds dual mandate is maximum employment and stable prices (which they have recently revised to mean ~2% inflation per year). Now that the Fed wants to start tightening before things spin entirely out of their control, they paint the numbers to look like unemployment is down and inflation is getting ahead of their 2% target. It's all just justification for them to continue tightening so that they can prolong the inevitable death of the dollar for as long as possible. The bottom line is the Fed will continue to tighten, and the market will wake up and realize that sometime soon.
They will continue to say they are tightening. But they will have two sets of books. One of them is currently in Belgium.
The interesting problem with their hiding purchases is that when the Fed owns Treasuries on their books, they pay all the interest back to the Treasury. Effectively those bonds are interest free and the face value is free printed money to the Treasury. But when they launder the money off their books, someone gets that interest. So the Fed is basicly choosing to keep/distribute that money. Someone is getting rich taking the interest off of the Fed's printed money off the books. And in doing so, the Fed is violating its charter to pay that interest back to the Treasury. Leaglly the Fed should have its charter revoked.
"Deflation" and "terrorist" are two words the government and the bankers can't seem to use correctly in a sentence.
It won't be long before grannie goes from eating Alpo to eating night crawlers.
Edit. High inflation and gold gets wacked. Makes all the sense in the world.
....or night crawlers eating grannie.
You beat me. Damn. That was a softball setup.
Like Stevie Wonder playing T ball with a weather balloon.
Or the night crawlers will be eating grannie.
I like the way you think.
The BLS will consider that substitution. The price of the night crawlers would be zero.
My meat only soars when I'm streaming free porn.
To me this is the most important statistic for the next year...I think inflation is coming...just how fast it comes is what we have to watch....will it be 3 to 5%..or will it jump much higher much faster....go hypo...
http://seekingalpha.com/news/1752883-new-gold-etf-allows-retail-investors-to-swap-shares-for-bars?source=email_rt_mc_title&uprof=51
New gold ETF allows retail investors to swap shares for bars
The Merk Gold Trust minimum share exchange will be about one hundred shares for one ounce of gold
I am sure they reserve the right to settle in FRNs or physical.
I hope I'll know when the zombie apocolypse is due to arrive so I can swap out for bars in time.
Inflation is impossible. I gots no more money.
Indeed. Want to watch someone's head explode, go ask an eCONomist what the "price" is of something you need for survival, but that no one is willing to sell.
Morons, moral hazard is not simply a "quaint term" you read about in ECON 101 after all.
Execute every last paper-pushing motherfucker.
If CPI rises and yields go down, gold rises, that's a fact.
So, unemployment down, cpi up, claims down, job creation always positive, growth in all sectors....sounds to me like the fed needs to raise interest rates. GDP will be positive too. Popcorn ready.
The Ponzi Munchkin will find some crack whore in Chicago who isn't doing so well to justify more printing.
Oh wait, she already did that...
The question is not why is it only 2%, the question is why did they let it go up at all?
out of control. they didn't want the 2% up.
exactly. since "they" make up all the phony numbers why did "they" print a 2%?
CME hogs and cattle are well off their recent highs (>10%).
So where's the inflation coming from??
Unless of course suppliers are price fixing. But that would never happen. Right?
Clearly we need more money printing. That'll fix it.
Dairy prices also look to be also heading north.
California hay prices are up almost 3X from where they were 5 years ago.
China is paying record prices for the hay they must import for their dairy industry...about $400/ton landed.
Nothing a new algorithm and dataset can't fix.