Inflation kicking in....prices of consumer goods rising
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kingblaze84
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Consumer Prices in U.S. Rose in February as Gasoline Jumped
http://www.bloomberg.com/news/2012-03-16/consumer-prices-in-u-s-rise-on-fuel-other-costs-little-changed.html
The cost of living in the U.S. rose in February by the most in 10 months, reflecting a jump in gasoline that failed to spread to other goods and services.
The consumer-price index climbed 0.4 percent, matching the median forecast of economists surveyed by Bloomberg News, after increasing 0.2 percent the prior month, the Labor Department reported today in Washington. The so-called core measure, which excludes more volatile food and energy costs, climbed 0.1 percent, less than projected.
Enlarge image Consumer Prices in U.S. Rise on Fuel
The biggest jump in gasoline in more than a year accounted for about 80 percent of the increase in prices last month, leaving households with less money to spend on other goods and services. Photographer: Victor J. Blue/Bloomberg
Bloomberg's Massar on U.S. Consumer Prices
Play Video
March 15 (Bloomberg) -- Bloomberg's Carol Massar examines price movements on items that make up the U.S. consumer price index. She reports on Bloomberg Television's "InsideTrack." (Source: Bloomberg)
U.S. Consumer Prices Rise as Gasoline Jumps
Play Video
March 16 (Bloomberg) -- Bloomberg's Mike McKee reports that the cost of living in the U.S. rose in February by the most in 10 months, reflecting a jump in gasoline that failed to spread to other goods and services. He speaks on Bloomberg Television's "Inside Track." (Source: Bloomberg)
The biggest jump in gasoline in more than a year accounted for about 80 percent of the increase in prices last month, leaving households with less money to spend on other goods and services. Federal Reserve policy makers say the advance in fuel costs will be temporary, and most see little risk inflation will flare out of control as unemployment exceeds 8 percent.
“There are some worries from the energy prices perspective, but the Fed and most people realize that the increase will probably be transitory,” said Benjamin Reitzes , an economist at BMO Capital Markets in Toronto. “Outside of energy prices, there is not much risk for the consumer.”
Stock-index futures held earlier gains after the report. The contract on the Standard & Poor’s 500 Index maturing in June rose 0.2 percent to 1,399.3 at 8:31 a.m. in New York. Treasury securities trimmed losses,, with the yield on the benchmark 10- year note at 2.32 percent, down from a high of 2.35 percent in the minutes before the data was released.
Survey Results
Estimates of the 80 economists surveyed ranged from increases of 0.2 percent to 0.6 percent.
Consumer prices increased 2.9 percent in the 12 months ended in February, the same as in January.
The gain in the core gauge followed a 0.2 percent increase in January and was smaller than the 0.2 percent gain median forecast of economists surveyed. They were up 2.2 percent for the last 12 months, compared with 2.3 percent for the 12 months ended in January.
Today’s report showed energy costs increased 3.2 percent from a month earlier. Gasoline jumped 6 percent, the most since December 2010.
http://www.bloomberg.com/news/2012-03-16/consumer-prices-in-u-s-rise-on-fuel-other-costs-little-changed.html
The cost of living in the U.S. rose in February by the most in 10 months, reflecting a jump in gasoline that failed to spread to other goods and services.
The consumer-price index climbed 0.4 percent, matching the median forecast of economists surveyed by Bloomberg News, after increasing 0.2 percent the prior month, the Labor Department reported today in Washington. The so-called core measure, which excludes more volatile food and energy costs, climbed 0.1 percent, less than projected.
Enlarge image Consumer Prices in U.S. Rise on Fuel
The biggest jump in gasoline in more than a year accounted for about 80 percent of the increase in prices last month, leaving households with less money to spend on other goods and services. Photographer: Victor J. Blue/Bloomberg
Bloomberg's Massar on U.S. Consumer Prices
Play Video
March 15 (Bloomberg) -- Bloomberg's Carol Massar examines price movements on items that make up the U.S. consumer price index. She reports on Bloomberg Television's "InsideTrack." (Source: Bloomberg)
U.S. Consumer Prices Rise as Gasoline Jumps
Play Video
March 16 (Bloomberg) -- Bloomberg's Mike McKee reports that the cost of living in the U.S. rose in February by the most in 10 months, reflecting a jump in gasoline that failed to spread to other goods and services. He speaks on Bloomberg Television's "Inside Track." (Source: Bloomberg)
The biggest jump in gasoline in more than a year accounted for about 80 percent of the increase in prices last month, leaving households with less money to spend on other goods and services. Federal Reserve policy makers say the advance in fuel costs will be temporary, and most see little risk inflation will flare out of control as unemployment exceeds 8 percent.
“There are some worries from the energy prices perspective, but the Fed and most people realize that the increase will probably be transitory,” said Benjamin Reitzes , an economist at BMO Capital Markets in Toronto. “Outside of energy prices, there is not much risk for the consumer.”
Stock-index futures held earlier gains after the report. The contract on the Standard & Poor’s 500 Index maturing in June rose 0.2 percent to 1,399.3 at 8:31 a.m. in New York. Treasury securities trimmed losses,, with the yield on the benchmark 10- year note at 2.32 percent, down from a high of 2.35 percent in the minutes before the data was released.
Survey Results
Estimates of the 80 economists surveyed ranged from increases of 0.2 percent to 0.6 percent.
Consumer prices increased 2.9 percent in the 12 months ended in February, the same as in January.
The gain in the core gauge followed a 0.2 percent increase in January and was smaller than the 0.2 percent gain median forecast of economists surveyed. They were up 2.2 percent for the last 12 months, compared with 2.3 percent for the 12 months ended in January.
Today’s report showed energy costs increased 3.2 percent from a month earlier. Gasoline jumped 6 percent, the most since December 2010.
Comments
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This is a result of irresponsible spending on neverending wars and tax cuts for the rich, which were expanded by both Democrats and Republicans.
Shopping has gotten real expensive in grocery stores lately, anyone else noticing this?? I won't even mention gas prices, just grateful I don't have a car. Feel bad for those who do -
? is crazy. I go through the 12 items or less line and am still paying $60+. I buy generic everything except cereal.
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I didn't really notice how bad things were when I bought 4 bags worth of groceries yesterday and the price came to be $150, I was like no way!! But the clerk turned out to be right, I just didn't look at the prices carefully enough. ? is really getting ridiculous out here, I'm gonna buy generic like you IMR, except when it comes to clothes. This is the first year in my life I feel ripped off buying food
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kingblaze84 wrote: »I didn't really notice how bad things were when I bought 4 bags worth of groceries yesterday and the price came to be $150, I was like no way!! But the clerk turned out to be right, I just didn't look at the prices carefully enough. ? is really getting ridiculous out here, I'm gonna buy generic like you IMR, except when it comes to clothes. This is the first year in my life I feel ripped off buying food
Fyi kingblaze84 we were warned about this some time ago - check-out the video within the link below...Mister Obama was forthright I'll give him credit for being straight up. It is gonna get worse.
http://hotair.com/archives/2008/11/02/obama-ill-make-energy-prices-skyrocket/
Ouch!!! Not a good statement from Obama........I still blame Democrats and Republicans for inflation and the ridiculous cost of living these days. Both parties have ? this country over smh -
No surprise here, after the stimulus' they had to enact to save the country, it was likely to happen. Im not sure this is what we should be worrying about tho - ? deflation may pose a greater threat once the Americans start deleveraging their massive debt to other countries.
Oh and another interesting point, this is why I tell ppl to invest in mostly stocks and global stocks and NOT in ? like gold, or useless other stuff (and to some extent not to invest in some bonds). Stocks are portions of a co. when a co. learns that inflation is eating away at profits they adjust and outpace it to grow (history proves this), and at this point u should be looking to invest in the stocks of other currencies if you can - over 65 years a USD could buy u a ton of ? at the grocery store (remember wen ur parents said that a quarter could get them a weeks worth of groceries ?) but now a dollar wont get u ? , the dollar has been on a decline since the mid 40s and I believe it will continue to do so in the long run. That doesnt mean that the US dollar will be worthless but it will be worth much less down the road - that can have good and bad implications, good being that manufacturing could get cheaper and foreigners that are growing their economies can buy more US goods.
You guys might want to look into buying Canadian and yes European stocks of strong companies. The Canadian Dollar, and the Euro will in the long term be worth more than the USD. ? they already are now.
Good post, I agree but damn the poor and desperate are really gonna have it bad sooner than later. Inflation has its benefits but there are much more serious drawbacks in the long run. Apartments and mortgages used to be about 300 or 400 a month, something any working person could afford back in the day. Now it's tough to even find apartments below a G a month. The dollar isn't worthless but it's downright depressing to realize it will be worth even LESS in the future. America's future isn't very bright in my opinion. Wages aren't increasing much while groceries and gas are....what a country. 16 trillion in debt with no relief in sight = disaster and chaos for the future. -
whoa, how old do you think the average SL user is? my parents have never said this(remember wen ur parents said that a quarter could get them a weeks worth of groceries ?)
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My mom is 56 and she has never told me she could buy a week's worth of groceries for a quarter lol.....she did tell me that she could buy a week's worth of groceries for about 60 bucks back in the 70s. How times have changed.....
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Oh, and she was also able to have a 2 bedroom apt in Rhode Island for 250 bucks a month in the 70s and late 80s....I would murder a whole family to find rent that low these days
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I remember when gas was 96 cents a gallon and a quarter pounder meal from mcdonalds was $3. Cigs were 2.50 a pack back in 06-07. The times will never come back.
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yea but gas is a finite resource
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kingblaze84 wrote: »No surprise here, after the stimulus' they had to enact to save the country, it was likely to happen. Im not sure this is what we should be worrying about tho - ? deflation may pose a greater threat once the Americans start deleveraging their massive debt to other countries.
Oh and another interesting point, this is why I tell ppl to invest in mostly stocks and global stocks and NOT in ? like gold, or useless other stuff (and to some extent not to invest in some bonds). Stocks are portions of a co. when a co. learns that inflation is eating away at profits they adjust and outpace it to grow (history proves this), and at this point u should be looking to invest in the stocks of other currencies if you can - over 65 years a USD could buy u a ton of ? at the grocery store (remember wen ur parents said that a quarter could get them a weeks worth of groceries ?) but now a dollar wont get u ? , the dollar has been on a decline since the mid 40s and I believe it will continue to do so in the long run. That doesnt mean that the US dollar will be worthless but it will be worth much less down the road - that can have good and bad implications, good being that manufacturing could get cheaper and foreigners that are growing their economies can buy more US goods.
You guys might want to look into buying Canadian and yes European stocks of strong companies. The Canadian Dollar, and the Euro will in the long term be worth more than the USD. ? they already are now.
Good post, I agree but damn the poor and desperate are really gonna have it bad sooner than later. Inflation has its benefits but there are much more serious drawbacks in the long run. Apartments and mortgages used to be about 300 or 400 a month, something any working person could afford back in the day. Now it's tough to even find apartments below a G a month. The dollar isn't worthless but it's downright depressing to realize it will be worth even LESS in the future. America's future isn't very bright in my opinion. Wages aren't increasing much while groceries and gas are....what a country. 16 trillion in debt with no relief in sight = disaster and chaos for the future.
Well rents are up right now b/c the housing market is in a recession, thats just part of the business cycle in real estate (in down times rents soar and it up times they stabilize and are usually lower) - the rents will subside in the near term tho. But if u buy a home now at these rates w/ a decent downpayment its not hard to find a mortgage around 300-400 a month (unless u live in NY, LA or areas of Chicago or Connecticut but places like Texas, NC/SC, Florida, Nevada, the mid west u can find that no problem). However, u gotta understand that America is a 15 trillion dollar economy and although they have a bright future ahead of them the next generation is not going to be as wealthy as the last. And unfortunately with the dollar that just happens to be a drawback of having such a huge economy. Eventually ppl will adapt as they did after the Great Depression and after the 50s. The Americans will eventually deleverage that most that debt and probably sell most of it to other countries (like China, Japan and Europe w/ Japan probably getting the bad debt SMH LOLOL).
Remember that with debt u dont want to pay all that off - the only 2 times in American history that the U.S. paid off ALL their debts they went into a depression not long after (the one of 1837 under Jackson and then there was the 1920s). Debt is not necessarily a bad thing , the most important factor is the affordability of that debt and today its actually at the lowest its ever been in history. A weaker dollar could help the U.S. in a big way. Most ppl dont even realize that the dollar has been on the decline over the last 65 years LOLOLOL despite the U.S. growing the way it did.
The attitude of today seems to be - "well dont worry our kids 'kids kids' will take over of our problems" and its true - the next generation the 90s & 2000s babies are gonna pay the price for the generation before them hence why they wont be as wealthy as the last. I guess on the brightside tho, other countries outside of America will grow and theyll get a chance, everything wont be entirely concentrated in or around the U.S.
Interesting post, you have some solid points about cost of living being cheaper in other areas of the country but the dollar's cheaper value is still not helping, hence the vast majority of Americans being dissatisfied with the direction of the country right now. When Americans eventually de-leverage the bad debt and sell it to other nations, what would happen as a result in your opinion?
Could it mean that China or other nations would literally own parts of America? For instance, could China theoretically own certain lands, buildings, or sections of the USA as a result of owning that debt permanently? -
Matter of fact: here you go mister IGNORANT ONE
http://politicalvelcraft.org/2011/03/05/united-states-sitting-on-worlds-largest-untapped-oil-reserve-forget-the-libya-diversion-say-no-to-rothschilds-obama/
Your link is very interesting because I always hear from oil experts and economists that America's oil reserves would only last about 6 months to a year. I heard this in fact from a conservative on Fox News, who dislikes Obama but admitted herself that America's oil reserves won't effect the oil market because it's just not enough. I'll have to question the validity of your link to be honest, if oil prices could be lower now, I'm sure the govt would do something to accomplish that. -
In Marvins Room wrote: »I remember when gas was 96 cents a gallon and a quarter pounder meal from mcdonalds was $3. Cigs were 2.50 a pack back in 06-07. The times will never come back.
Gas at 96 cents a gallon back in 2007?? ? .....cigarettes were definitely cheaper back in the day, I don't smoke them but the prices definitely are more expensive now by far. Thanks to the high cost of so many goods these days, the only things I buy in large amounts now are weed and....wow that's it. Everything else I try to find good deals on and buy very seldom. I'm grateful the underground economy hasn't seen a price hike for the most part. I don't even go to the movies as often as I used to, my fam buys bootleg dvds that have the same quality as anything I see on TV. -
all i see is a rise in commodity prices... which would be expected since developing nations are copying the US in terms of consumption... Meaning commodity prices are affected by world markets (supply & demand), not by US led policy
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I am thinking about growing my own food. At least fruits and veggies. Prices are skyrocketing and I cut down on everything but the basics.
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I am thinking about growing my own food. At least fruits and veggies. Prices are skyrocketing and I cut down on everything but the basics.
Yeah same here. Anyone here grow their own food from an apartment? -
kingblaze84 wrote: »kingblaze84 wrote: »No surprise here, after the stimulus' they had to enact to save the country, it was likely to happen. Im not sure this is what we should be worrying about tho - ? deflation may pose a greater threat once the Americans start deleveraging their massive debt to other countries.
Oh and another interesting point, this is why I tell ppl to invest in mostly stocks and global stocks and NOT in ? like gold, or useless other stuff (and to some extent not to invest in some bonds). Stocks are portions of a co. when a co. learns that inflation is eating away at profits they adjust and outpace it to grow (history proves this), and at this point u should be looking to invest in the stocks of other currencies if you can - over 65 years a USD could buy u a ton of ? at the grocery store (remember wen ur parents said that a quarter could get them a weeks worth of groceries ?) but now a dollar wont get u ? , the dollar has been on a decline since the mid 40s and I believe it will continue to do so in the long run. That doesnt mean that the US dollar will be worthless but it will be worth much less down the road - that can have good and bad implications, good being that manufacturing could get cheaper and foreigners that are growing their economies can buy more US goods.
You guys might want to look into buying Canadian and yes European stocks of strong companies. The Canadian Dollar, and the Euro will in the long term be worth more than the USD. ? they already are now.
Good post, I agree but damn the poor and desperate are really gonna have it bad sooner than later. Inflation has its benefits but there are much more serious drawbacks in the long run. Apartments and mortgages used to be about 300 or 400 a month, something any working person could afford back in the day. Now it's tough to even find apartments below a G a month. The dollar isn't worthless but it's downright depressing to realize it will be worth even LESS in the future. America's future isn't very bright in my opinion. Wages aren't increasing much while groceries and gas are....what a country. 16 trillion in debt with no relief in sight = disaster and chaos for the future.
Well rents are up right now b/c the housing market is in a recession, thats just part of the business cycle in real estate (in down times rents soar and it up times they stabilize and are usually lower) - the rents will subside in the near term tho. But if u buy a home now at these rates w/ a decent downpayment its not hard to find a mortgage around 300-400 a month (unless u live in NY, LA or areas of Chicago or Connecticut but places like Texas, NC/SC, Florida, Nevada, the mid west u can find that no problem). However, u gotta understand that America is a 15 trillion dollar economy and although they have a bright future ahead of them the next generation is not going to be as wealthy as the last. And unfortunately with the dollar that just happens to be a drawback of having such a huge economy. Eventually ppl will adapt as they did after the Great Depression and after the 50s. The Americans will eventually deleverage that most that debt and probably sell most of it to other countries (like China, Japan and Europe w/ Japan probably getting the bad debt SMH LOLOL).
Remember that with debt u dont want to pay all that off - the only 2 times in American history that the U.S. paid off ALL their debts they went into a depression not long after (the one of 1837 under Jackson and then there was the 1920s). Debt is not necessarily a bad thing , the most important factor is the affordability of that debt and today its actually at the lowest its ever been in history. A weaker dollar could help the U.S. in a big way. Most ppl dont even realize that the dollar has been on the decline over the last 65 years LOLOLOL despite the U.S. growing the way it did.
The attitude of today seems to be - "well dont worry our kids 'kids kids' will take over of our problems" and its true - the next generation the 90s & 2000s babies are gonna pay the price for the generation before them hence why they wont be as wealthy as the last. I guess on the brightside tho, other countries outside of America will grow and theyll get a chance, everything wont be entirely concentrated in or around the U.S.
Interesting post, you have some solid points about cost of living being cheaper in other areas of the country but the dollar's cheaper value is still not helping, hence the vast majority of Americans being dissatisfied with the direction of the country right now. When Americans eventually de-leverage the bad debt and sell it to other nations, what would happen as a result in your opinion?
Could it mean that China or other nations would literally own parts of America? For instance, could China theoretically own certain lands, buildings, or sections of the USA as a result of owning that debt permanently?
If they de-leverage 2 things happen 1 good 1 bad. On the bad side deflation is far worse than inflation, picture this.... u create goods that sell for $10 but cost u a total of 6$ to make, when deflation occurs the price of goods fall to say $4-5... when this happens the price of ur home, car, payments, profits and more fall too which can also translate to debt problems, decline in ur currency, and even unemployment as u have to lay ppl off to cut costs and adapt. Now picture that happening nationwide and in all traces of life and business.... This happened in 1933 if memory serves me.
On the bright side ? When u adjust, goods are cheaper, ppl can consume more (but if u cant afford to buy more cuz ur value of ur dollar falls below it whats the point in cheaper goods LOLOL), ppl will save more (which can be good or bad), if foreigners are buying that debt u will now have more surplus to invest (but creditors to make payments to), and foreigners who now have far greater purchasing power can buy ur goods, it might be a lot cheaper to manufacture again in ur country meaning jobs could be created and another competitive advantage added. In real terms, since foreign countries like India, China, Europe, Canada, Brazil are where most of the growth is going to come from their growth will also be ur growth as well. And they will pump money into ur country. Also ud alleviate the debt problem ASSUMING u dont deleverage ALL of it.
You'd have to be more specific in what u mean by 'literally own parts of America' , it kind of does and doesn't work like that. If you buy debt, it depends on the type of debt u buy, usually when a creditor CANT make payments u come in to collect the physically property or asset. In the case of the U.S. if u own a ton of debt of say NY municipal bonds ur not gonna OWN New York LOLOL if they cant make payments. But a building or something tangible ? If the owner of that building cant make payments and thats what the terms of the debt obligation entitle u to sure. If the Americans de-leverage tho I'd assume theyd do it with the intention of never taking it back LOLOL.
Ok very informative. What you said on the foreign nations buying up our debt is exactly what I expected, assets can be taken on American land if necessary. How bad do you think gas prices can be with the falling dollar and the debt?? -
kingblaze84 wrote: »
Thank ? I live in the burbs. I can make a deal with neighbors so that I can grow my food from their land and share food. Cause major cities in times of crisis is the worst place to live at.
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kingblaze84 wrote: »
Thank ? I live in the burbs. I can make a deal with neighbors so that I can grow my food from their land and share food. Cause major cities in times of crisis is the worst place to live at.
Oh you're lucky man, I can't ask anyone here to help me grow food, it's mostly cement and sidewalks here. If there was to be a food crisis in NYC someday, I'd have to survive on what I have stocked. When that runs out I'd probably starve to death, unless I start eating my neighbors and their cats. Hope it never comes down to that... -
invest in guinea pigskingblaze84 wrote: »Yeah same here. Anyone here grow their own food from an apartment?
i'm not sure the suburbs are really set up for food-growing, but i guess you COULD make it work there...Thank ? I live in the burbs. I can make a deal with neighbors so that I can grow my food from their land and share food. Cause major cities in times of crisis is the worst place to live at.
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SionB, yeah'll try to invest in things when the market calms down a little more. I'm afraid to put my money into anything, and what I wouldn't mind investing in now, is expensive as ? . I want to keep my money a little close to the vest for now, but I'll try out the stock market when I save money better (aka get a better paying job than a paralegal)
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invest in guinea pigskingblaze84 wrote: »Yeah same here. Anyone here grow their own food from an apartment?
I could never eat guinea pigs, I used to have them as pets 6 years ago. I had like 8 of them at one point, most died at birth though sadly. They're all dead now, all except one I sold to a pet store after she began acting erratically. I think I'd rather eat a bunny rabbit. They look tastier anyway -
Yea groceries are ridiculous. $4 milk anyone smh. I have some friends who I use to think were just hippies but they are smart as hell. They bought chickens to raise for eggs. They killed and ate one but they said it was mad dry lol. They grow their own veggies alot, etc.. I need to start thinking like them because when ? hits the fan ain't nobody else gonna look out for me and my family.
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Inflation could lead to modest tax cut in 2012
http://www.usatoday.com/money/perfi/columnist/block/story/2011-09-19/inflation-tax-brackets/50469496/1
I am not copying and pasting that whole article. -
lighthearted25 wrote: »Yea groceries are ridiculous. $4 milk anyone smh. I have some friends who I use to think were just hippies but they are smart as hell. They bought chickens to raise for eggs. They killed and ate one but they said it was mad dry lol. They grow their own veggies alot, etc.. I need to start thinking like them because when ? hits the fan ain't nobody else gonna look out for me and my family.
Those friends of yours turned out to be pretty smart huh? I have family in Haiti that grow veggies and raise chickens that I used to make fun of, but in a way I kind of envy them now. They don't pay 150 bucks a week for groceries like my fam has to do these days smh agh. For now I'll just have to stockpile as much food as I possibly can, ? forbid any disaster financially happens. I'm thinking like a survivalist every single day. I have stocks of toothpaste, bathroom tissue, and canned goods, I'm working on stocking other items soon enough.
