Nofsdad
Joined: 06 Jul 2003
Posts: 6742
Location: Central CA
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Posted: Wed Jul 16, 2008 5:48 pm Post subject: Consumer Prices Take Major Jump
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WASHINGTON - Consumer prices shot up in June at the second fastest pace in 26 years with two-thirds of the surge blamed on soaring energy prices.
The Labor Department reported that consumer prices jumped 1.1 percent last month, much worse than had been expected. Energy prices rocketed upward by 6.6 percent, reflecting big gains for gasoline, home heating oil and natural gas.
The big rise in prices cut deeply into consumers' earning power with average weekly wages, after adjusting for inflation, falling by 0.9 percent. It was the biggest monthly decline since a 1.1 percent drop in weekly wages in September 2005.
The 1.1 percent June price increase was the second largest monthly advance in the past 26 years, surpassed only by a 1.3 percent gain in September 2005 from a jolt to energy costs after Hurricane Katrina. |
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| Separately, the Federal Reserve reported that industrial output rose 0.5 percent in June, the fastest pace in 11 months. The increase, the highest since a 0.6 percent gain in July of last year, reflected an end to an automotive production strike rather than any widespread strength in the economy. |
But we're so desperate for any good news here, we'll toss it in anyway, just so we can say SOMETHING gained. 
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| Wall Street turned higher on Wednesday as a second day of falling oil prices helped to offset the concerns about the jump in inflation last month. The Dow Jones industrial average was up more than 125 points in late morning trading. |
Gee, isn't it funny how all this news about the "lower classes" being hammered yet again always seems to perk Wall Street right up and bring the parasites crawling back from under their rocks?
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| "We're now seeing danger for the economy on both sides — growth is too slow and inflation is too high," Sen. Charles Schumer, D-N.Y., said in a statement. He urged the Bush administration to work with Congress to "pass some mainstream, bipartisan solutions for our economy." |
Last time Charlie Schumer dared to open his mouth (about Freddie and Fannie) they tried to blame the entire economic cluster%$#! on him.
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| "The President is very concerned about the impact high prices are having on Americans, especially those who are on lower incomes. What the president would reiterate is what he said yesterday ... that the health of the overall economy is dependent on inflation remaining low," presidential press secretary Dana Perino told reporters. |
No... it depends on his DEFINITION of "low". If you're in the multimillionaire bracket, as is the president and anyone he's likely to give a damn about, an increase of 0.5 to 1.5 percent quarterly may seem totally insignificant. If your part of the millions living paycheck to paycheck, those numbers can be catastrophic.
I suspect that as long as it's not having any significant impact on either his own lifestyle or that of his cronies, it will continue to be termed "low" and the recession "mild".
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| Over the past 12 months, consumer inflation is up by 5 percent, the largest year-over-year gain since a similar 5 percent rise in May 1991. |
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| Food prices also showed a big increase in June, rising by 0.7 percent, more than double the 0.3 percent increase of May. Vegetable prices shot up by 6.1 percent, the biggest increase in nearly three years. |
No, these are not simle little adjustments people. This is the damned trend. Unless a whole lot of people in boardrooms and private clubs, along with a bunch of bought and paid for bureaucrats in dozens of government agencies suffer a sudden attack of conscience... wait! Let me finish before you bust up laughing at what I admit is a ludicrous image...
this is the way it's going to be until there's nothing left for them to take. All any of them are doing right now is stuffing as much into their pockets as they possibly can before the next election turns the current crop of bureaucrats out.
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| Core inflation, which excludes energy and food, showed rising pressures too, with an increase of 0.3 percent in June, up from a 0.2 percent gain in May and the biggest one-month rise since January. |
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