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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transaccountin's picture

they all waiting for the iphone manz, its all good

Rubicon's picture

Why is Japanese inflation so low?

trebuchet's picture

productivity growth running ahead of wage growth

Rubicon's picture

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

Mark Carney's picture

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

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.

BooMushroom's picture

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

Welcome back, Carter!

GetZeeGold's picture



Consumer Prices Soar


Is that anything like inflation?


Jlmadyson's picture

Krugster says no.

Pump more.

GetZeeGold's picture



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


saints51's picture

Whole Food's prices are high as giraffes pussy.

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?  

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....



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.

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.

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.

smlbizman's picture

awhile back i said to my wife to stop buying could tell they changed their 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 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 ...

MilleniumJane's picture

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

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



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.

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!

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.

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!

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...

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.

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.

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.

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.

Shizzmoney's picture

"Let them eat stocks and housing."


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

BooMushroom's picture

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

LawsofPhysics's picture

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

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.. 

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.

fonzannoon's picture

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

 - The big club

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.

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.

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.)

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.

UGrev's picture

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

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.

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.

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.

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. 

TexasAggie's picture

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

PlausibleDenial's picture

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

Racer's picture

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

monopoly's picture

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

LongSoupLine's picture

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

fonzannoon's picture

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

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.