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Consumer Prices Soar By Most Since June 2009, Retail Sales Ex-Autos And Gas Expose Lethargic Consumer

Tyler Durden's picture




 

Following yesterday's producer price shock, when PPI soared by the most since June 2009, today's CPI follows suit, with the largest jump in over 2 years, printing up 0.6%, in line with expectations, up from an unchanged print in July. In other words, the food inflation which is already spreading through the economy courtesy of the record drought, is about to be supported by some brand new Fed-generated inflation. Luckily, as yesterday, nobody uses gas or food. And in other news, retail sales posted yet another very disappointing print, when despite a better than expected headline print of 0.9% in August advance retail sales, a number which included gas and auto sales, retail sales excluding these very volatile components, rose by only 0.1%, on expectations of a 0.4% rise, and a downward revision from 0.9% to 0.8%. This was the 5th miss in 6 months, and ugly all around. In other words, the US consumer, revised consumer credit data notwithstanding, is levering up and not generating any real new sales. Expect yet another round of GDP revisions. However, in light of yesterday's Bernanke announcement, it is pretty obvious that no macro economic data for public consumption does the disaster that is the economy in the Fed's eyes, justice, and makes us wonder just how ugly the underlying reality must be. All that said: with inflation spiking, and consumers lethargic, it certainly appears that Bernanke picked the perfect time for more monetary paper dilution.

And from the CPI report:

The seasonally adjusted increase in the all items index was the largest since June 2009. About 80 percent of the increase was accounted for by the gasoline index, which rose 9.0 percent and was the major factor in the energy index rising sharply in August after declining in each of the four previous months.

 

The food index increased 0.2 percent in August, with major grocery store food group indexes mixed. The index for all items less food and energy rose 0.1 percent for the second month in a row. The indexes for shelter, medical care, personal care, new vehicles, and recreation all rose in August. These increases more than offset declines in the indexes for used cars and trucks, apparel, household furnishings and operations, and airline fares.

 

 

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Fri, 09/14/2012 - 08:49 | 2794113 transaccountin
transaccountin's picture

they all waiting for the iphone manz, its all good

Fri, 09/14/2012 - 08:52 | 2794137 Rubicon
Rubicon's picture

Why is Japanese inflation so low?

Fri, 09/14/2012 - 09:06 | 2794208 trebuchet
trebuchet's picture

productivity growth running ahead of wage growth

Fri, 09/14/2012 - 09:59 | 2794523 Rubicon
Rubicon's picture

how does that negate the money pumped into the system? where is the difference?

Fri, 09/14/2012 - 10:36 | 2794682 Mark Carney
Mark Carney's picture

MOAR Stongerer!!!!!1111!!1!!!

Fri, 09/14/2012 - 09:02 | 2794186 Dr. Richard Head
Dr. Richard Head's picture

+2% inflation YOY.  Chairistan must be proud that he met his 2-3% target.  Beers for everyone.  Inflation good, price deflation bad - for banksters that is.

Fri, 09/14/2012 - 12:18 | 2795389 BooMushroom
BooMushroom's picture

.6% compounded monthly for 12 months = 7% annual inflation!

Welcome back, Carter!

Fri, 09/14/2012 - 08:51 | 2794114 GetZeeGold
GetZeeGold's picture

 

 

Consumer Prices Soar

 

Is that anything like inflation?

 

Fri, 09/14/2012 - 08:52 | 2794140 Jlmadyson
Jlmadyson's picture

Krugster says no.

Pump more.

Fri, 09/14/2012 - 08:55 | 2794153 GetZeeGold
GetZeeGold's picture

 

 

After shopping at Whole Foods for years......Paul didn't even notice the rising prices at Walmart.

 

Fri, 09/14/2012 - 09:25 | 2794314 saints51
saints51's picture

Whole Food's prices are high as giraffes pussy.

Fri, 09/14/2012 - 08:56 | 2794157 jekyll island
jekyll island's picture

Have you seen the smaller containers at the store?  Same price, but now 12 ounces of frozen vegetables instead of 16oz.  Ice cream is 1.5 quarts.  Tomato soup at Kroger is $1.50 a can.  Can't wait to see what happens next year when soaring price of corn increases meat prices and gas.  BTW, who's brilliant idea was it to put ethanol into gasoline?  

Fri, 09/14/2012 - 08:59 | 2794177 ejmoosa
ejmoosa's picture

Hell, it's not even ice cream any more.  Look at your Bryers.  It's a frozen dairy dessert, and it had a lot of cheaper ingredients than you ice cream had....

 

 

Fri, 09/14/2012 - 09:04 | 2794199 Dr. No
Dr. No's picture

Actually, I believe it is due to some legislation which makes Ice Creame illegal.  Forzen desert is still okay for the time being.

Fri, 09/14/2012 - 09:19 | 2794286 ejmoosa
ejmoosa's picture

No, ice cream is legal.  Adding the ingredients they choose make it something OTHER than ice cream. 

 

Pick up the container and read it.

Fri, 09/14/2012 - 09:22 | 2794301 Dr. No
Dr. No's picture

Interesting.  I figured with BigGulp on the list of illegal goods, Ice Cream would be there too.  I guess buy all you can while you can.

Fri, 09/14/2012 - 09:44 | 2794454 smlbizman
smlbizman's picture

awhile back i said to my wife to stop buying oreos...you could tell they changed their ingredients...so buy the cheap ones if you must beacause they are the same now.....cambells chicken noodle...half the noodles it seems...and so on and so on...

and on a same but different note my son in his senior finance class is butting heads with his teacher...she wants to teach fantasy and he calls her out on it....ie...inflation is from prices going up...and he said it is a symptom of monetary expansion....they have lap tops and interent in her class, so he keeps zero hedge up on his....she must hate the tylers ...

Fri, 09/14/2012 - 09:57 | 2794513 MilleniumJane
MilleniumJane's picture

Thank you for raising a son who is awake.  We don't need any more zombies in this country!

Fri, 09/14/2012 - 09:38 | 2794407 trebuchet
trebuchet's picture

visit the store at the end of the day. 

buy reduced items.

personal food inflation down 10%

 

oh wait, that is when the statisticians go in and check food prices

 

 

Fri, 09/14/2012 - 09:09 | 2794215 Arnold Ziffel
Arnold Ziffel's picture

The only things falling in price are my house and my car.

Most other stuff I use on a dialy basis--food, gas -- is rising.

Biflation is what some call it.

I don't think thsi QE will lift house prices (unemployment, food stamp usage, uninsured, etc) but they will make bankers and PM holders very Happy people.

BTW, I apologize for saying "bankers" in the same sentence as "PM holders." I know it's an insult.

Fri, 09/14/2012 - 09:14 | 2794247 krispkritter
krispkritter's picture

They're not even bothering with smaller containers.  I checked the 'pound of bacon' packages against the new and improved 12oz ones. Label got bigger to cover up the gap at the top where the 4oz. went.  Same with coffee; 1lb. bags and the 12oz bags are the same, just less in it. Just saw one brand yesterday that had only 10oz in it. Held it up to a 12oz, same size, thus the same as the 16oz. Bonus! More air in every bag!

Fri, 09/14/2012 - 10:01 | 2794526 MilleniumJane
MilleniumJane's picture

Just bought three bags of potato chips for a big family barbecue last night. $4.29 for each friggin' 10 oz. bag! I swear the bags were 12 oz. a year/year and a half ago. I'm not absolutely sure because I don't buy potato chips very much any more, but the bags sure seem to have shrunk a bit smaller.

Fri, 09/14/2012 - 09:02 | 2794194 Dr. No
Dr. No's picture

No, prices soared due to massive consumer demand.  Outstripped supply.  Personally I dont go to stores, but my wife said people are lined up at the Goodwill.  Times are good!

Fri, 09/14/2012 - 09:18 | 2794273 krispkritter
krispkritter's picture

Six! people around the clearance rack in Men's dept. at Targay yesterday. I actually had to wait in line to get my turn at the rack. One employee was actually hawking all the clearance stuff he just marked down in appliances to everyone he saw pushing a cart around...

Fri, 09/14/2012 - 10:12 | 2794551 MilleniumJane
MilleniumJane's picture

Most of the customers I deal with ask if we are having a sale or if there is a special discount price for buying hardware in bulk.  I have to tell them no unless they are willing to buy thousands of units because we are a small company. 

Six seems to be the magic number this week.  I have had six people come in or call offering to sell us their antique stuff.  I have to tell them no unless the piece is particularly rare.  We already have antique furniture and fixtures that are not moving.

Before '08, we had maybe three or four people a month offering to sell us their stuff.  '10 brought us at least 2 or 3 a week.  Now it's almost every day.

Fri, 09/14/2012 - 08:50 | 2794127 Jlmadyson
Jlmadyson's picture

But, but, but MSM says up .9%.

That means the economy is booming right?

Not seen a one headline highlighting the real picture. Not a peep.

Just too easy these days.

Fri, 09/14/2012 - 08:51 | 2794131 HD
HD's picture

Ben is a hero I tells ya - he is solving America's obesity and air pollution problems single handedly. Take that Bloomberg.

Fri, 09/14/2012 - 08:52 | 2794133 Sam Clemons
Sam Clemons's picture

Normal growing economies have demand pull inflation.  We are going to create cost push inflation so the economy will then "grow."  Just another failure of inductive reasoning.

Fri, 09/14/2012 - 08:52 | 2794134 Shizzmoney
Shizzmoney's picture

"Let them eat stocks and housing."

 

But don't worry, folks.  "The jobs are coming".

Fri, 09/14/2012 - 12:27 | 2795436 BooMushroom
BooMushroom's picture

Your Jobs is dead
and no reporter cares
If there's hyperinflation
I'll see you there.

Fri, 09/14/2012 - 08:52 | 2794139 LawsofPhysics
LawsofPhysics's picture

If only any of this counted in the inflation number - FAIL.  Perpare for war sheeple.

Fri, 09/14/2012 - 08:53 | 2794147 UGrev
UGrev's picture

Try having a family member(s) with food allergies (Gluten) and see how fast your money burns up. My food expenditures when up 30%. Go ahead.. print more money, Ben.. that'll fix everything. Fucking idiot.. 

Fri, 09/14/2012 - 08:57 | 2794162 LawsofPhysics
LawsofPhysics's picture

One cousin is sensitive to gluten.  I brew beer from sorghum ever now and again so he can partake in the celebration of the harvest.

Fri, 09/14/2012 - 08:59 | 2794174 fonzannoon
fonzannoon's picture

"They don't care about you! At all! At all At all!!!!"

 - The big club

Fri, 09/14/2012 - 09:15 | 2794253 Dr. Engali
Dr. Engali's picture

I don't know how people do it. My mother in law was just diagnosed with diabetes and she is on fixed income. I don't know how she is going to make it.

Fri, 09/14/2012 - 09:47 | 2794467 MilleniumJane
MilleniumJane's picture

Wow, I feel for you.  A family member has diabetes and her daughter had to shell out $1500 bucks cash to a private insurance company to cover whatever Medicare won't.  The daughter's mom and dad live on SS and are barely surviving.  Most people do not realise just how expensive insulin dependent diabetes is to treat.

Fri, 09/14/2012 - 13:48 | 2795880 goldfish1
goldfish1's picture

My father was diagnosed. He changed his diet. Voila - no more diabetes.

How does that work again?

(His doctor was pissed. Wanted him to be on frequent doctor visits and insulin for the rest of his life.)

Fri, 09/14/2012 - 12:38 | 2795492 BooMushroom
BooMushroom's picture

Those gluten-free processed foods are getting easier to find. It's the substitutes for gluten-based products (bread and pasta) that get so damned expensive. Lots of cooking for yourself, from simple ingredients. Rice, fruits and vegetables, fresh meat (a lot of the processed ones have MSG) and fish, sprouts and nuts, lots of dairy.

I feel your pain. When my family get together I have to be very aware of a whole list of foods and ingredients: lactose, gluten, chocolate, seafood, mangoes, sugar, artificial sweeteners, and cinnamon.

Fri, 09/14/2012 - 18:50 | 2797343 UGrev
UGrev's picture

doesn't that list seem extremely odd to you ? the fact that there are so many?

Fri, 09/14/2012 - 08:55 | 2794155 Jason T
Jason T's picture

Low future productivity will destroy the bernak plan.. inflation is going higher because we are doing piss poor private fixed investment and piss poor public construction spending.

Fri, 09/14/2012 - 08:56 | 2794158 economicfreefall
economicfreefall's picture

One goal accomplished by the elite...

One third of Americans now count themselves part of the lower-middle or lower classes, according to a report from Pew Research Center, including nearly 40 percent of young people between the ages of 18 and 30. https://miningstockvaluator.com/news.php?id=117

Fri, 09/14/2012 - 08:57 | 2794160 Dr. Engali
Dr. Engali's picture

Well I'm doing my part to support the economy..I bought a rifle for my son and 1000 rounds of ammo. I'm going to buy a bow for my daughter this month.

Fri, 09/14/2012 - 08:58 | 2794171 LawsofPhysics
LawsofPhysics's picture

Ah, fond memories of my father.  Upon earning an advanced degree in engineering, my father presented me with a such a gift. 

Fri, 09/14/2012 - 11:54 | 2795253 TexasAggie
TexasAggie's picture

Isn't this an investment in the future barter economy?

Fri, 09/14/2012 - 12:17 | 2795386 PlausibleDenial
PlausibleDenial's picture

Try sllingshots.... after some practice quite deadly.  Oh, and the ammo is readily available.... marbles or small ball bearings. 

Fri, 09/14/2012 - 08:57 | 2794163 Racer
Racer's picture

What else can you expect but appallingly bad timing from the man who said sub-prime was contained

Fri, 09/14/2012 - 08:59 | 2794170 monopoly
monopoly's picture

And so it begins. Lets see where we are by the end of the year. Gonna get interesting.

Fri, 09/14/2012 - 08:59 | 2794178 LongSoupLine
LongSoupLine's picture

The only "shovel ready" job Obarry has created is the massive bullshit clean-up.

Fri, 09/14/2012 - 09:02 | 2794191 fonzannoon
fonzannoon's picture

Schiff video blog "operation screw" (where are they now biderman video blog?)

http://www.europac.net/media/video_blog

Fri, 09/14/2012 - 09:04 | 2794201 buzzsaw99
buzzsaw99's picture

I doubt auto sales will continue at the 2012 pace much longer. Perhaps if gasoline skyrockets there will be a downsize spurt but after that expect a long decline.

Fri, 09/14/2012 - 09:08 | 2794219 adr
adr's picture

A lot of people are buying one last new car with good credit so they can stop paying their mortgage, credit cards, and other debt and go straight to hoarding cash. That way a plummeting credit score doesn't matter. You need a car in America if you plan on actually working.

I have a 7 year old car with 145k miles and a 789 credit score. I am thinking about doing the same thing.

Fri, 09/14/2012 - 09:36 | 2794396 saints51
saints51's picture

I have been thinking the same. I just sure hate to have a loan.

Fri, 09/14/2012 - 10:45 | 2794761 MilleniumJane
MilleniumJane's picture

A bit OT:  Rent-A-Center commercial featuring Hulk Hogan as the new spokesman.  It's everywhere on tv.  *shakes head*  Luring the desperate sheep to the slaughterhouse.  Et tu Troy Aikman?

http://rtoonline.com/Content/Article/feb10/rent-a-center-hulk-hogan-021910.asp

 

Fri, 09/14/2012 - 09:04 | 2794203 adr
adr's picture

EBT slaves don't even look at the price of food. They just buy until the card is declined.

Real consumer inflation is measured by the Big Mac index.

2007 Big Mac Meal $3.85
2008 Big Mac Meal $4.28
2009 Big Mac Meal $4.82
2010 Big Mac Meal $5.25
2011 Big Mac Meal $5.47
2012 Big Mac Meal $5.83
2013 Big Mac Meal $6.85? $7.99?

McDonalds increased their bottom line in august by shrinking their burgers. Burger King went public again and the $1 burger doesn't even cover half the bun. The sheeple don't understand QE, but they understand a fast food value meal consting more than a steak dinner at Outback.

Real sales will continue to sink further into the abyss, but with the magic of mark to myth accounting, corporate profits will continue to soar ever higher.

Fri, 09/14/2012 - 09:14 | 2794243 dwdollar
dwdollar's picture

I had a Big Mac the other day. The smaller "burger" (if that's what you call it) didn't surprise me so much... it was the bun. It was dry, crumbly, and mostly air... GOD only knows what the Oracle of Omaha is doing to that poor bread.

Fri, 09/14/2012 - 11:45 | 2795186 boiltherich
boiltherich's picture

I positively loath McD's the only thing I ever went there for was the $1.99 sausage biscuit with hash browns and coffee maybe once or twice a month and that is only because a REAL breakfast of scrambled eggs, hash browns, toast, and bacon, with coffee in breakfast houses are now over ten bucks with a tip, but McD's raised their prices on June 1 from $1.99 to $2.39 for a neat little 15% "inflation."  Nice, having the ability to give yourself a raise like that.  I waited in line but when I got to the register I just told them I would be back when I get a 15% raise, in other words never.  Have not been to a McD's since.

Since I have had a single raise in more than three years of 3.2% which averages to less than 1% per year COLA I vowed not to buy ANYTHING that rises in price faster than that.  Now, of course I still have to eat and use the HVAC in my apartment, and I cannot simply not buy fuel for the car, so I do buy those things and just take out the increases in those from all other purchases.  As I posted yesterday in another thread, I look at everything I pick up in stores and make a decision as to it's necessity, if I can get by without it I put it back, if I cannot do without it I will buy the cheapest version of it I can find. 

And in some cases my pissed off'edness just keeps me from buying even stuff I really need, like that grossly overprice fixed printer cartridge I used 3 fucking times before it decided not to work.  The goddamned ink cartridges cost more than the f'ing printer.  So, I just don't print anything anymore.  Fuck'em.   

I now have a narrow list of stuff I routinely buy when I get paid no matter the price because I consider them to be necessities, but anything else is gone, no more dry cleaning, I will just wear something I can launder at home.  No more ice cream, anyway I am getting to the age where I can gain weight just by dreaming of food in my sleep.  Seriously, I would like to know how that happens, you weigh 161.0 naked at bedtime and wake up naked in the morning at 162.4 pounds.  I did not even get up to pee.  That scale has to be wrong. 

Fri, 09/14/2012 - 12:24 | 2795418 PlausibleDenial
PlausibleDenial's picture

I don't eat at McDonalds with the exception of the hang over quarter pounder every so often.  But, on my morning drive to the beach I pass a Micky D's that now has a line around it.  Poor souls, no pund intended.  Re:  Ink cartridges.  You are correct in the price to buy new ones.  Costco just started a program here (TPA) where you bring in your expended cartridges to the film counter and they refill for a third of the cost.  Work just as well. 

Sun, 09/16/2012 - 04:40 | 2800109 boiltherich
boiltherich's picture

The ink cartridge is full, it just quit working.  Paid thirty bucks for that little bitch a few months ago and never needed it, printer technology is just not functional, I have paid at least $200 for them in the last 4 years and got exactly 12 pages of printing out of them.  Not because it does not work or cannot work, but because of market manipulations and price fixing that render every aspect of it totally absurd.  It would be cheaper in the long run for me to buy a new printer every time I need to print something than to replace ink cartridges every three months because though they are still full but I did not use them enough to keep them "wet."  Like typewritter ribbons used to be.  If you did not use them in six months the ink would dry out and you had to buy a new ribbon, but those were 1.99 not 33.75.

Screw it, I just do not need to print anything that badly.  Whoever thinks they can keep soaking me for something I rarely use and who does not provide me with a viable product can just go look for another sucker because they got their last stolen buck from me.  False economy, we lowered the price of your ink from a 145,000% markup to 139,000% so you should buy buy buy, never mind that the first time I tried to use it the fucking thing did not work making the real markup infinite.  I have paid more for ink cartridges than I should have had to pay in a lifetime and I have printed fewer than a dozen pages that needed color ink. 

Fri, 09/14/2012 - 09:05 | 2794204 El Tuco
El Tuco's picture

If Americans grew gardens like they once did, food prices would be half of what they are now. I am as guilty as the next guy but I remember a time when almost ever home in the neighborhood had a garden. I think I might just prepare a space in the backyard this fall for next year.

Fri, 09/14/2012 - 09:09 | 2794223 krispkritter
krispkritter's picture

I'm going to try and get one of these suckers to grow in my aquaponics tank. I'm going to need more canning jars if it takes off: http://blog.asiantown.net/-/11148/that--39-s-one-huge-tomato-tree.aspx

Fri, 09/14/2012 - 12:46 | 2795540 BooMushroom
BooMushroom's picture

That's a LOT of tomatoes to can!

That upside-down hanging tomato planter (Topsy Turvy) is now at the 99cent only store (actual cost of each item 99.99¢).

Fri, 09/14/2012 - 09:11 | 2794230 Sudden Debt
Sudden Debt's picture

The way the average American is eating these day, you need 50 cows, 50 pigs and a soda factory in your backyard per person and that would need to be some bigg ass garden :)

 

Fri, 09/14/2012 - 09:13 | 2794237 adr
adr's picture

and during Obama's second term a DHS agent will show up at your door and burn your garden for not paying tax on the vegetables you grew for your own consumption.

Make no mistake, citizens will not be allowed to be self sufficient. You will be declared an enemy of the state for planting anything other than Cass Sunstein approved trees.

Fri, 09/14/2012 - 09:34 | 2794375 krispkritter
krispkritter's picture

Department of Homegrown Security...

Fri, 09/14/2012 - 13:54 | 2795915 goldfish1
goldfish1's picture

Put your leaves on the spot this fall. Nutrious fertilizer. Throw your egg shell in there too.

Fri, 09/14/2012 - 09:06 | 2794207 Sudden Debt
Sudden Debt's picture

JUST WAIT UNTILL THE EFFECT OF QE3 INFINITY KICK IN AND UNEMPLOYMENT REACHES ZERO!!!

Fri, 09/14/2012 - 09:06 | 2794209 fonzannoon
fonzannoon's picture

Did GS throw that Hatzius guy in the dumpster yesterday?

Fri, 09/14/2012 - 09:07 | 2794213 marcusfenix
marcusfenix's picture

I can't help but notice gas going over 4.00 a gallon is no longer a newsworthy item, as it did yesterday where I live and not one peep from either national or local media.

so we've got raising food, gas and energy prices all hitting at once and BB decides to top it all off by pulling the trigger on QE3...

talk about sailing a sea of gasoline in the dark in a boat made of matches with only a flamethrower to light your way.

Fri, 09/14/2012 - 09:16 | 2794260 adr
adr's picture

Are you kidding? We are supposed to welcome the return of $4 gas with open arms and thank our savior Obama to the bottom of our hearts. Before every meal we are to pray to the central planner for his generosity, letting us live under such a wise and thoughtful regime.

Fri, 09/14/2012 - 09:09 | 2794218 houserich
houserich's picture

Ben says we'll feel wealthy soon. I can't wait.

Fri, 09/14/2012 - 09:08 | 2794220 Whoa Dammit
Whoa Dammit's picture

No worries, the Bernanke will institute Consumer Purchasing Power Price controls via pegging the dollar the value FB stock. /s

Fri, 09/14/2012 - 09:11 | 2794233 Arnold Ziffel
Arnold Ziffel's picture

1.7% is what COLA looks like for seniors at this point:

http://www.bls.gov/cpi/#news

I hope they don't blow it all in one place.

Fri, 09/14/2012 - 09:13 | 2794241 GetZeeGold
GetZeeGold's picture

 

 

Is that Pepsi.....or Coke?

 

Fri, 09/14/2012 - 12:54 | 2795570 BooMushroom
BooMushroom's picture

Sam's Choice, BiTcHeZ!

Fri, 09/14/2012 - 12:07 | 2795322 boiltherich
boiltherich's picture

AZ, we will be LUCKY to get anything, AARP is predicting 1.2% and all I can say is why bother at all?

But, there is no way to speculate what the actual COLA will be now that the way they determine it is based on the CPI as measured in the 3rd quarter against the same period in the previous year. That is the chain weighted geometric hedonic substitution laden CPI in which anything that rose in price is stripped out. They supposedly now take a snapshot of prices on June 1 and another on August 31 and calculate the CPI increase then subtract that from last years CPI for the same period, if it is a positive number no raise, if it is a negative number then that means prices have risen and so a raise might be granted but only if the overall CPI is higher than the next most previous upward adjustment to the COLA. Since the last raise was 3.2% determined in 2011 for the 2012 calendar year the CPI will have to rise by more than 3.2% for the 3rd quarter prices before any raise is due.

If you remember correctly on June 1 of this year gasoline was $4.279 (here anyway) and it was on August 31 $3.999 so one of the weather vanes of inflation shows DEFLATION by their standards, certainly not in excess of 3.2%, food has gone up dramatically this year, but as usual not in the 3rd quarter when harvests good bad or indifferent come in, food always drops when there is an abundance of perishables on the shelf. Clothing also drops in that period as retailers try to clear out racks for back to school merch and upcoming holiday stock. Gas almost always drops then too as by August 31 the summer driving season is ending and refiners are tooling up for winter blends and heating oils. They need to free up storage space, and pipelines, which are both chronically tight in the US.

I would not be too surprised if we get a 1.x% raise as it is an election year, but I will also not be surprised to find out we get nothing at all. Since the start of the depression in 07 I have experienced a fall in my purchasing power of I estimate between 30-40%, where I used to have 6-700 per month left over after paying the necessities I now find I have 2-300 and only that because of draconian household budget cutting. Some months less than zero.

Fri, 09/14/2012 - 09:13 | 2794238 dark pools of soros
dark pools of soros's picture

Trickle down your leg economy

Fri, 09/14/2012 - 09:13 | 2794242 firstdivision
firstdivision's picture

Good thing this data came out the day after QE3 was announced.

Fri, 09/14/2012 - 09:15 | 2794251 BrigstockBoy
BrigstockBoy's picture

"Inflation while if temporarily it cures unemployment, in the long run increases unemployment." - Hayek

Fri, 09/14/2012 - 09:15 | 2794256 crawl
crawl's picture

I get tickled when someone touts the 'ex volatile food and energy prices, inflation remains tame' line. 

It doesn't matter.  Since 2008, fundamentals or logic does not matter.  Central banks around the world will do all they can to make reality into fiction and fiction into reality.

Can't wait for those big $$$ jobs created by the FED to land in my lap. 

Fri, 09/14/2012 - 09:15 | 2794257 yogibear
yogibear's picture

We should see a lot more asset price rise over ther next year and a half with the Fed's printing.

Food, oil, metals. All going up. Ample supply of labor in the private sector so we should see that remain flat.

Fri, 09/14/2012 - 09:23 | 2794303 adr
adr's picture

The idea is to destroy all non-unionized labor and bankrupt every corporation that isnt traded on a public exchange.

The Chick-Fil-A scandal making its way through every media outlet had more to do with destroying a private corporation, than protesting gay marriage. Goldman Sachs and Morgan Stanley can't make any money on a restaurant that could possibly take business away from Chipotle.

If ChickFilA announced they were going public, Cramer would put chicken sandwiches all over his desk and tell the sheep to go long crispy nuggets.

Fri, 09/14/2012 - 09:19 | 2794279 Law97
Law97's picture

Bothering with fundamentals....so 2007...

Fri, 09/14/2012 - 09:19 | 2794284 Schmuck Raker
Schmuck Raker's picture

About 80 percent of the increase was accounted for by the gasoline index, which rose 9.0 percent...

Yeah Baby, "Energy Independence" in the US - coming soon. If you have a bicycle...or a horse.

Fri, 09/14/2012 - 09:53 | 2794497 Just Ice
Just Ice's picture

Liked your comments, made me laugh!!  The italics your post began with kept me from giving you an up arrow though.

Fri, 09/14/2012 - 09:24 | 2794309 overmedicatedun...
overmedicatedundersexed's picture

corzine just smiled his new hedge fund now fully funded by the FED..gee it's good to be king or the king's best bud.

Fri, 09/14/2012 - 09:27 | 2794326 Jason T
Jason T's picture

Cant' wait to see wage numbers when they come out.. 

Fri, 09/14/2012 - 09:29 | 2794334 Nacho Libre III
Nacho Libre III's picture

TD, kindly replace "lethargic" with "broke", since most consumers who actually have jobs that involve work, lost the luxury of lethargy sometime back in 2007.
Thanks

Fri, 09/14/2012 - 09:49 | 2794477 khakuda
khakuda's picture

Just wait until WTI blows well past $100 to see where inflation goes.  The Fed will blame it on Mid East and African tensions, but the  move up from $78 started within a week of QE talk over the summer.  The Fed will then change the inlflation benchmark yet again to one that only includes ipad prices with hedonic pricing, of course.  Obama will release the SPR prior to the election, for non political reasons of course, providing a nice buying opportunity to get rid of more ever worthless paper dollars.

 

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