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Following A One Month Break, PPI Resumes Climb, Rises 0.2% From -0.4% Previously, Biggest One Month Surge Since January; Core Rises 0.4%,
Following a big drop in June energy prices, which pushed the broader PPI to a one year low sequential change of -0.4%, the PPI is once again in an uptrend, rising by 0.2% in July, higher than consensus of 0.1%. Core PPI was higher by 0.4%, following the 0.3% increase in June, and double consensus of 0.2%. Energy did drop modestly in July by 0.6%, but far less than the June 2.8% drop, and was more than offset by the rise in food Producer Prices of 0.6%. In terms of various stages of production, finished core goods rose due to a 2.8% hike in tobacco products, with light motor trucks and pharmaceutical preparations also contributed significantly to the rise in the finished core index; finished foods rose primarily due to a 2.7% rise in veal prices, while energy prices dropped due a 2.8% decline in gasoline. In intermediate goods, core was led by higher prices for plastic resins and materials, which rose 2.1 percent, energy was led by liquefied petroleum gas led this advance, increasing 2.5 percent, and foods saw a 6.3% increase in natural, processed, and imitation cheese. Crude energy benefited from a 5.2% decline in crude petroleum, crude foodstuffs actually dropped 0.8% in July, led by a 9.7% decline in prices for slaughter poultry led the monthly decrease in July. Lower prices for fresh and dry vegetables also contributed to the decline in the crude foods index. As for crude core, the biggest upward price mover was a 7.0% increase in prices for copper ores was a major contributor to the monthly increase in July.
Source: BLS
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"imitation cheese"????????????
And what on earth is that???
velvetta
Styrofoam, painted yellow. Or, maybe, a yellow iPad?
"A 2.7% rise in VEAL prices" , really??? The price of fucking veal can influence government statistics? Didn't soy sauce price drops balance this out, WTF?? Has The Onion taken over the reporting of govt. stats? If the price of veal is significant, then so is the price of 7.62 x 39.
LOL
+7.62x39
plastic cheese made in China.
Well its been confirmed that they make plastic RICE so plastic cheese seems truthful...
vegatable oil made into a solid with nasty chemical flavorings
Remember, the only inflation that counts is wages and key food ingredients:
HFCS
Textured vegetable protien (from GM soy)
MSG (makes imitation cheeze taste better)
Salt (ditto)
Partially hydrogenized soybean/corn oil
Hell ! Why not make imitation cheese from imitation vegetable oil ?
I'm working on marketing for instant water. All suggestions are welcome.
Those styrofoam wedges you see mounted on the heads of fans of the Green Bay Packers.
The stuff that Kraft uses in their Mac and Wheeze
bullish!
Inflation. And the government still spending money to prop up the things that aren't getting more expensive, apparently CHICKENS.
http://money.cnn.com/2011/08/16/news/economy/chicken_prices/index.htm?iid=HP_LN
Well, I can assure you chicken FEED is getting more expensive by almost 50% YOY and I have the receipts to prove it. Last July 50 lb of cracked corn cost $9, this July $15.
Hence the big reported rise in meats
Yup. Last year we gave the deer a tasty treat. This year they are on their own.
And next year if you aren't able to bag several you'll be facing starvation absent other supplies. Progress.
And next year the deer will be your tasty treat.
With a current PPI core rate at 5% annualized, will the Fed start tightening?
Biflation. Once again.
Futures are up 45 min before the open! I hated Crammer in the afternoon and now he pisses allover the morning news too!
CNBS has become unwatchable. Mark Haines RIP. Rick Santelli move to Bloomberg or Fox.
"has become"
how about
has been always was
He is an absolute horror.
Worst guy on CNBC and the benchmark for that particular prize is high. MCC's is a close second. Mostly want to punch her.
Nails.on.a.chalkboard.
Spot on, Liz. She acts as if she were acting like she thinks a real hard-hitting news person would act. I think I made the point that it's all an act -- and a bad caricature at that. Still, she does have big... never mind.
And that new guy, Brian, he's just Cramer-lite: Rolled up sleeves, yelling louder than anyone else, shrill voice, talks gibberish. Think they are grooming him for a replacement?
Food prices up 0.6%.
QE3 now in doubt
Yep no doubt no QE3 (at least not for stawks) now fo' sure!
The only one talking about QE is the dork from GS, and his case for QE is a measely $300 billion which has already been priced in many times over since promise of QE to offset all bad news since January and sub DOW 10,000.
Im watching this clownshow from the sidelines.
In that case we got a whole lot of re-pricing to do
I am out of stocks too. With the gold trade such a no brainer, why play in front of Ben's steamroller? (Unless one is a day trader, they must be very pleased with the Bernank).
Are you trading or buying? They are night-n-day you know. Thanks in advance for your clarification.
"2.8% hike in tobacco products"
I'm no smoker, but If I was one, I'd sue US.Gov for
violating human rights.. Common 15 years ago Pack of Marlboro
cost $0.99 at the gas station and now what? $15? in NY state?
Talking about GOLD? Tobacco is the GOLD nowadays, for those
.gov maniacs.
How they are always broke, no matter how much they collect
on tolls and cigarets? Always broke.
Yet another similarity to prison...
When I was in the service in 76 we bought Marb's for 11 cents a pack $1.10 a carton, now I pay $49.99 for an Apx. 5,000% increase. Meanwhile my income in the same period has doubled.
PPI report -- Your zero-percent-till-2013 Federal Reserve inflato-dollars at work!
Perry is quite wrong about charging Bernanke with treason. The appropriate and provable charge is racketeering.
Quite treasonist to bailout foreign banks to the tune of some 16 trillion dollars while average Amreicans were losing their jobs and being thrown out of their homes, IMO.
YoY: Core PPI up 2.5%. PPI overal up 7.2%. Nosebleed in a down economy.
And since the economy is confirmed totaly screwed by any measure, lets power up the robots and bid everything up more!
Hell robots got nothing else better to do, and who knows what kind of mischief they could get into if left idle.
Come on Ben, you can do it just 1 down day! Just for old times sake. What are you really scared of?
True, Sheep. The Bots don't need food. To them, everything is bullish. But without their QE3 wet dream, TPTB gonna throw a tantrum.
I look at all this, and keep concluding theyre just delaying, marking off time till some big event happens. None of this in itself is a plan, its just delay tactics.
Agree SD1, the players/enraged bull is/are ready to burst from behind the gates, mauling, goring....etc. Clearly this delay is to allow more pressure to build, or some crazy, esoteric alignment is being awaited. Whatever it is, it's going to be huge!
ORI
That is my observation. The only reason they would throw around these sums in a hopeless cause is they are just buying time.
However, there is one thing they are doing that doesn't buy them time, so logically, it has to be part of their long term planning.
They are buying gold. Gold is the answer, and anyone without it is betting on the old system, a system the insiders apparently don't have any faith in anymore.
Let's just hope the bots burst the price of food bubble soon. I can hardly afford caviar, lamb chops, and lobster at the moment.
Tyler, can you plz make the comparison between Bernanke and KGB from the movie Rounders... I still think KGB was Bernanke
Tweet from Nouriel Roubini:
Hyperinflation! So much for hysterical claims that Fed policy & QEs will cause massive inflation "@zerohedge: PPI up 0.2%, exp. 0.1%"
And Zerohedge response:
@Nouriel Or claims that gold as an inflation hedge will tumble...
Roubini's first blatant mistake is actually believing these less-than margin of error 'official Gubmint numbers'?
Yea Roubini, we're all just 'hysterical' thats all. Lets see what your opinion would be if you were part of the 25% unemployed, and not some FED butt-boy as you now apparently are.
and Roubini's reincarnation of RGEmonitor
http://www.economonitor.com/nouriel/2011/08/15/is-capitalism-doomed/
but he turned off comments on this particular post to drive traffic to project syndicate
why?
The guy has an ego the size of his new penthouse (I wonder if Larry Summers is back on Roubini's payroll / visa versa)
I guess snuggling up to the FED/administration must provide good paychecks.
I hear his new place doesn't have walls decorated with Vaginas like his old one
Perhaps Tyler could provide some insights
http://nymag.com/daily/intel/2008/10/economist_nouriel_roubini_has.html
most likely both are on the payroll of one master.
Thanks for sharing.
Roubini's new slogan: Not as gloomy or doomy as you think!
From the AP news release:
http://finance.yahoo.com/news/July-core-producer-prices-rb-481603091.htm...
"A spike in food and energy prices pushed up inflation early this year, but weak economic growth and high unemployment kept underlying price pressures contained."
It takes a great deal of creativity to put a positive spin on anemic economic growth and high unemployment.
Things are so bad that its actually good news.
That, in a nutshell, is biflation nation. Been sayin' it.
What is the mechanism that takes us from stagnant wages, increases to our cost of living, and decreasing prices for debt laden assets? While it's easy to describe the present, I can't fathom that this phenomenon is anything other than transitory... which way will it break? (aside from the fact that bi-flation is technically impossible given the binary nature of money supply changes).
The ecstasy of a free money orgy casino is now followed by the agony of higher prices and bills to pay
Meanwhile, the BDI is climbing again. Look at Crude though. From near 120 to late 80's is a huge move, impacts everywhere.
How much gold rise is the anti-oil move?
PPI? Hahhhhhhhha!
Humph! NUMBers!
ORI
http://aadivaahan.wordpress.com/2011/08/16/pre-cursor-2-and-currents/
Yes and some (Mr Roubini) expect a China double dip. Ha.
Yea ORI but isnt it funny all these who tell us all about prices are the ones who obviously NEVER would stoop to go to a grocery store alongside peasants themselves? Makes me laugh to hear billionaires discussing 0.01% fluctuations food prices, when you know they have a hired chef preparing their coq au vin dinner.
Anyone who actually has to go to the store to buy their own food knows its fuked.
Hah! I remember some of these clowns beign asked such simple questions as the price of milk at the check out counter and them stumbling/fumbling.
Why does democracy and all it's associated workings look more and more like monarchies gone horribly wrong?
ORI
maybe because we still haven't found a cure for this virus?
http://en.wikipedia.org/wiki/Divine_right_of_kings
All economic systems that have been tried end the same way. Small percentage at the top, controlling the masses at the bottom, until a revolt. Then the next set of kooks gain control. Rinse and repeat.
It's like anything assembled from the elements, eventually it returns from whence it came, dust. It's the nature of the physical dimension (meat grinder), ie flawed. Hedge accordingly.
qe3 will come, and then superinflation! fuck roubini!
New artwork by David Dees
http://www.rense.com/1.imagesH/rpaul_dees.jpg
I have artwork by dees nutz
And in a further tweet, Nouriel reveals his theory:
As in 2008-09 once we double dip we will get Stag-Deflation (Recession + Deflation) rather than Stagflation. There is no inflation in sight
Well Roubini may stagger into the truth a bit, that being a whole lot of people simply CANT pay higher prices, therefore inflation cant really take off. Which then means companies are taking the hit somewhere else. And certainly 'consumers' are taking the hit another way thru smaller filled packages and way crappier quality. Have you bought steaks lately? Its ridiculous poor quality.
Yup. Just a moderate amount of both inflation and deflation in just the right places is just as killer as a huge dose of either. Worse from the point of view of central banks because they have no tools to deal with it, let alone experience or knowledge. THey're only just barely groking to it now
But on further review, Roubini is obviously far too simplistic. He leaves out things like tires, and the huge rise in price theyve seen. 'Theres no inflation in sight'? Just shows how out of touch these Ivory Tower types really are.
You're seein' it, bro. You and me.
Bonds rallying worldwide. Bunds up, 10y turning around. Gilts up BIG. Swiss 10y rallying to new highs.
Anybody seriously think PPI is saying anything about inflation? Look at bonds, folks. Just look at the action!
how to tell market are rigged.
inflation is up, yet long term tlt, opens higher today instead of down. Why does our government work so hard to make sure our markets are not free or fair.
Import/export prices yesterday were also a shock:
Export Prices - M/M change 0.1 %-0.4 %
Export Prices - Y/Y change 9.9 %9.8 %
Import Prices - M/M change -0.5 % -0.1 % -0.8 % to 0.5 %0.3 %
Import Prices - Y/Y change 13.6 %14.0 %
Avocados up 338% in two months at Slaveway, bummer.