Core Inflation Soars At Fastest Pace Since 2008

After producer prices disappointed modestly yesterday, prompting treasury yields to tumble, all eyes are on consumer prices today as it met expectations rising by 2.9% YoY - the fastest rate of increase since Dec 2011 - thanks to soaring rent/shelter costs.

CPI highest since 2011...

Core CPI highest since 2008...

Under the covers, one of the bigger drivers was a surge in shelter costs...

Shelter inflation rose 3.5% YoY and Rent Inflation rose 3.6% YoY

Just a good thing wages are rising... oh wait!!

Comments

silverer ejmoosa Fri, 08/10/2018 - 09:00 Permalink

Read the details of what is included. Basically, they are taking the check registers of hundreds of people and looking at what they write checks for. I'm sure property taxes are included. But just the inflationary increases. Some folks taxes are staying the same in many areas, but even so, everything else goes up. I noticed for the last couple of years the biggest increases are in the cost of insurance. All types of insurance: auto, home, medical, liability. Also, take into account the cost of college. Car prices are up thousands from a few years back. Not the same monthly payment, is it? Why are car prices up so much? Inflation. That's right in your monthly payment. Even if you bought the exact same car today, it would cost thousands more today than five years back.

In reply to by ejmoosa

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In reply to by silverer

el buitre asiya789 Fri, 08/10/2018 - 09:29 Permalink

The OFFICIAL RATE OF INFLATION according to the bureau of lying statistics.  The average price of used cars has remained steady since 1998 due to Hedonic Improvements.  Their reports are not worth the electrons they are printed on.  But what many people who do know that they are lying through their teeth don't realize, is the consequences of it.  The most important number from the politicians and bubbleheaded economist is the GDP.  But the full name of it is the "real GDP," meaning the nominal GDP minus the "deflator," i.e. the rate of inflation.  Say the nominal GDP is 5% and the official deflator is reported at 2.5%, then the reported GDP growth is 2.5%.  But if the deflator is really 10%, then the drop in real GDP is minus 7.5%.  When compounded annually since the GFC, that would indicate that the real GDP is roughly one-half of what it was in September of 2008.  Welcome to the Greatest Depression.

In reply to by asiya789

Endgame Napoleon ejmoosa Fri, 08/10/2018 - 10:26 Permalink

For those who own property in blue states, there is bigly property tax. In red states—for non-property owners, with low wages, who are not on the welfare-for-womb-productivity train—there is the 10% sales tax on food. The impact is relative to income. Many of those low-wage workers must work gigs, which means twice-as-high SS tax: 15.3%, not the 7.65% that dual-high-earner parents and welfare-buttressed parents pay.

One thing is a constant across the nation: Dual-high-earner couples, paying their college kids’ shelter costs and other major household bills without giving up any of life’s luxuries, like a posh zip-code house, a lake house, multiple and lengthy vacations per year, constant fine dining, etc. 

To single adults struggling to find jobs that actually cover a full range of household bills on EARNED-ONLY income, these crony dual earners brag about how their kid landed this big temp or part-time job, with wages and hours that would NOT even come close to covering the cost of rent and all other household bills for any non-managerial adult occasionally hired in such 98% youth-gang jobs.

The college kids are working for luxury money—money for trips and clothing, just like their parents did in college—and the employers talk about that openly in interviews for such jobs, just like employers hiring for “voted-best-for-moms”  call centers, back-office jobs and other office settings with 98% mom-gang employees tell you openly that “The women we have working here have somethin’ comin’ in” from spousal income, child support that covers rent or .gov-subsidized rent and free EBT groceries, plus a refundable child tax credit up to $6,431.

Dual-earner parents in above-firing crony-parent jobs do not have to worry about such things, not even when they take 9 two-week excused vacations per year on top of PTO and various & sundry other excused absenteeism (for kids, for kids). Non-parents meeting HIGH, every-month quota standards would be fired for 5 minutes of that.

They go from crony-parent job to crony-parent job without putting themselves through the futile process of getting advertised low-wage churn jobs. Sometimes, they can do the same for their kids since that is part of the crony-parent job network: getting your kids jobs via other crony-parents-in-charge. That way, fewer decent jobs are ever even advertised. Those of us with one earned-only income stream get the leftovers, the EXPENSIVE scam and churn jobs. 

In reply to by ejmoosa

lunaticfringe ejmoosa Fri, 08/10/2018 - 11:16 Permalink

One of the great scams, and the only one we cannot get out of, is the cost of taxation. That has never been in the CPI and yet our sales tax, gas tax, property tax, registration fees- have all increased.

 

CPI is most assuredly a fucked calculation when you omit mandatory government theft. Taxes in total cost me 10k a year and I can't even get a free pass into Yellowstone- which raised its fees this year.

In reply to by ejmoosa

kralizec silverer Fri, 08/10/2018 - 08:57 Permalink

I have a problem with that data...I am not seeing it...I would like to know the basket contents in detail.  I am not saying it is necessarily wrong or even suggesting for one second the government numbers are close to right...I just subjectively by my own day to day experience am not seeing it in enough levels for it to pass my smell test.

In reply to by silverer

silverer kralizec Fri, 08/10/2018 - 09:02 Permalink

I had a big increase in insurance. Mainly liability coverage for my company. When you get jacked up 30% (never had a single claim), and your policy covers LESS, not more, then that's a big part of the overall dollar total. You should dig out your own check registers from five years back and look what you spend over a year. You'd be surprised at the changes.

In reply to by kralizec

Hal n back silverer Fri, 08/10/2018 - 09:14 Permalink

The government asseses that healthcare insurance is averaging a 1% increase over the last 10 years. So 10% of spending is going up 1%. Check it out in the detail if you want to verify.

i have no clue how they do it ecxept for fudging numbers.

do not forget deductibles, co pays etc built in and the govt probably considers obamacare as an improvement.

we know its all bs, but what are we going to do about it.

In reply to by silverer

SybilDefense silverer Fri, 08/10/2018 - 09:36 Permalink

Reminds me of gas-o-nol.  I get 3 mpg less with 10% ethanol added, the price goes up the day we have another surprise "x", yet takes weeks to go back down if ever.  You pay more, get less and the market gets away with it as we are powerless against such large government.  Have a look in your wheaties box next time.  It's half empty before you open the plastic, but the box is still the same size.

Nickle, dime and quartered...to death.

%2.8 yield on letting the bank hold your money guaranteed, %2.9 inflation and rising, also guaranteed...to get worse.  In summary, you pay the bank to use your money (negative yield).  Who said it wasn't coming to America.

Gold standard = 0 inflation = financial accoutability.  Therefore, never again, at least with the graft pros we are told we elected.

US Referendum 2020: All Gov employees and elected officials must be re elected/no lifer pensions.  1 voice/1vote secure us citizen only internet voting and daily line item polling created to ensure "by the people, for the people" governance, and return to gold standard/audit the eliminate the fed.

Pose that and watch the roaches expose their own guilt.  WE have a responsibility to run OUR government.  It says so.  If we gift the government to the loudest or most funded leaders, we deserve to be the victim of it's muse.

How tough a fight it would be to take our government back via laws and reason.  Only then will we focus on the needs of our country over the desires of the financially aggressive.  Imagine how much would get done for 1/5th the taxation.

Wonder if Dinesh D'Sousa would help me make the movie showing it ("the Best America") in action instead of writing a Jerry McGuire mission statement and trying to explain the concept.  He's still out of jail, right?  Oh ya, there's a R in office.  He's safe ...for now.

In reply to by silverer

Endgame Napoleon silverer Fri, 08/10/2018 - 11:05 Permalink

With my four licenses and college degree, except in temp jobs, I can never get anywhere near the back offices of insurance, which are dominated by non-licensed non-degree-holding mom gangs, but I have a theory about that issue, involving (1) the proliferation of lawyer ads on TV, (2) 101 million US citizens of working age out of the labor force, (3) 78 million gig pieceworkers and (4) 42 million employed-in-name-only citizens and noncitizens who qualify for EBT and other welfare programs, in addition to up to $6,431 in refundable child-tax-credit cash, by staying under the income limits for the programs by working part time.

On the sales end of insurance, I noticed that the people that .gov showers with freebies to reward womb-productive sex, including single-breadwinner non citizens and single moms, often (1) avoid buying the legally required coverage or (2) let it cancel for non-pay. This prevents licensed agents who have hard jobs, when in busy offices, from getting (or keeping) the paltry commission that bumps up their low wages a little.

Although you are talking about business insurance, the risk pool is probably smaller there, too, causing uprates, because of many small businesspeople shirking the product. With a smaller risk pool, you sometimes have higher rates.

Small businesspeople might not be able to afford it, and it was hard for my ex and I. We paid for insurance when we had a shop, sacrificing small luxuries to do it. We also paid our business loan back, sacrificing more than just small luxuries to do that. We shared one old car for a long time. We lived in crappy apartments, never went out to eat and rarely traveled anywhere. 

Many single mommas do much better by not bothering with any of it. .Gov pays them in multiple streams for womb-productive sex, and they have their own crony-mom job network, where they can be as absentee as they please. Work days revolve around mom-bonding rituals, like baby-mommy-look-alike-bulletin-board-decorating contests, Halloween dress-up days and cubicle-decorating contests, not to mention the claws-un retracted bullying out of “non-culture-fits.”

In reply to by silverer

Calvertsbio breaktwister Fri, 08/10/2018 - 10:18 Permalink

How does that happen ? If you hit 6% you will pay a 25% Interest payment on the US DEPT of 21T ? Do you think for a minute that Trump or the FED will allow that to happen and look the consumer in the eye and tell them... When you pay your tax, we are going to take 25% of it and give it right to the people that are filthy rich because for the past 10 years the free money we ALREADY gave them was being paid by you on DEBT ?

WTF !

In reply to by breaktwister

fattail Bill of Rights Fri, 08/10/2018 - 11:24 Permalink

The $50,000 gold will come shortly after one of those hypersonic missiles from china or russia prove operational and sink something.  Let the world know the US navy no longer threatens those countries operating outside of the petro dollar and the flood of inflation will be unleashed.

This seems to be the source for the underlying belligerence coming out of the Deep State Alphabet soup agencies.

In reply to by Bill of Rights

Calvertsbio ludwigvmises Fri, 08/10/2018 - 10:24 Permalink

So it is either tin foil hats here : https://www.cnbc.com/id/42551209

 

Or CPI which it total BS ? 

It is in the middle and real, honest people know it. At that middle number and a little higher most everyone in this country is going backwards, fast... Only because of the world economy, cheap labor has this ponzi scheme continued, now we are going to remove that and expect consumers to pay real value for a product in America on a 3rd world wage ? Good Luck with that....

In reply to by ludwigvmises