Wholesale inflation is worst in 27 years

[Omaha Steve]

Source: AP

By MARTIN CRUTSINGER

WASHINGTON (AP) - Soaring costs for gasoline and food pushed inflation at the wholesale level up by a larger-than-expected amount in June, leaving inflation rising over the past year at the fastest pace in more than a quarter-century.

The Labor Department reported that wholesale prices jumped by 1.8 percent last month, the biggest one-month rise since last November. Over the past 12 months, wholesale prices are up 9.2 percent, the largest year-over-year surge since June 1981, another period when soaring energy costs were giving the country inflation pains.

Core inflation, which excludes energy and food, was better behaved in June, rising by just 0.2 percent, slightly lower than expectations.

Federal Reserve Chairman Ben Bernanke, who was scheduled to deliver his mid-year report on the economy to Congress on Tuesday, was expected to highlight the threat posed by inflation pressures. The central bank at its June meeting brought an end to an aggressive rate-cutting campaign that had been designed to keep a prolonged housing slump and severe credit crunch from pushing the country into a deep recession.

The central bank is currently caught between the opposing forces of rising inflation and slumping economic growth.



Read more: http://apnews.excite.com/article/20080715/D91U9MKG0.html

[RUMMYisFROSTED]

1. It's easier to say what has been better than all the worsts.

Let's see:

1. CEO pay
2. I'm drawing a blank
3.
4.
5.
6.
7.
8.
9.
10.

[high density]

2. Why do these jokers even bother to report the "core inflation" numbers?

It's like saying, "The high temperature today is 309815 on the crazy homeless man number scale." The number is totally useless.

[unpossibles]

8. it's like when a friend of mine was on Weight Watchers

but did not include the beer she drank.

[Submariner]

3. That factoid should drive W's popularity poll down into the teens

I guess Chimpy's orders to us to go 'shopping' didn't work out as well as our intellectual MBA-in-chief planned.

[bdamomma]

4. they are putting the nooses around our necks when do we change that

objective.

[ixion]

5. "rising inflation and slumping economic growth" = STAGFLATION

as many have been predicting. These people were either ignored or mocked by the MSM, of course.

[Frances]

7. Stagflation, high gas prices, Iran hostages

defeated Carter in 1980.

I hope they defeat McSame this year because the Repubs are responsible for stagflation and Iraq much more than Carter was responsible for the economic mess he inherited. And he didn't invade Iran; he inherited a bad situation from earlier Presidents.

[Ian David]

6. Worst inflation since June 1981

Answers.com's History of 1981


<snip>

Japan's gross national product reaches $9,925 per person, up from $2,195 in 1971; her trade surplus with the United States reaches $15.8 billion, up from $3.2 billion; and her private sector employs 54 million people, up from 51 million.

The U.S. economy continues to falter, with inflation at 14 percent and unemployment at 7.4 percent, but President Reagan reveals a program for economic recovery February 18, calling for cuts in 83 federal programs. He announces plans in March to cut taxes and reduce the federal budget by $130.5 billion.

The price of silver stabilizes at $12 per ounce March 28, down from $40 in January.

The U.S. prime-interest rate reaches 21.5 percent, highest since the Civil War, as double-digit inflation and high unemployment plague the economy.

President Reagan signals a tough new policy towards organized labor August 6 by dismissing air traffic controllers who have defied his return-to-work order. Professional Air Traffic Controllers Organization (Patco) has struck August 3, demanding a 4-day week and a $10,000-a-year raise. Only 2,000 Patco members remain on the job. Patco is decertified as the bargaining body for air traffic controllers in October and files for bankruptcy in November.

President Reagan signs a bill August 13 mandating the deepest tax and budget cuts in U.S. history. Designed to save taxpayers $750 billion over the course of 5 years, it follows "supply-side" economic theories that reject Keynesian ideas popular since the 1930s. Supply-siders led by California economist Arthur Laffer, 40, claim that reducing taxes will encourage business and the rich to invest in taxable activities rather than parking income in nonproductive tax shelters and will thus help the overall economy. While "Reaganomics" will be credited with producing the longest peacetime boom in history, it will also lead to neglect of cities, deterioration of infrastructure, and massive deficits financed by foreign borrowing (see tax increase, 1982).

President Reagan addresses the nation on television September 29 appealing for fiscal austerity and asking for an additional $13 billion in spending cuts for fiscal 1982. He astonishes supply-siders by requesting $3 billion in tax increases. Texas-born White House budget director David A. (Allen) Stockman, 36, has proposed in May that early retirement benefits available at age 62 under Social Security be cut drastically, and reports now circulate that Reagan is considering a 3-month freeze on the annual cost-of-living increase in over-all Social Security benefits. Payroll taxes rise this year to 13.0 percent (6.65 percent each for employee and employer), up from 1 percent each in 1949, and the maximum income subject to payroll deduction is $29,700, up from $3,000 (see 1983).

America's top 10 CEOs receive an average of $3.5 million per year in compensation and there are complaints about the widening gap between the pay of top management and middle management (see 1988).

More:
http://www.answers.com/topic/1981

[Tempest]

9. It's just mental

So stop whining.

[Doctor_J]

10. How long before the retail inflation reflects this?

How many weeks before I see the grain price increase in my grocery bill?

[bulloney]

11. There's another one of those benchmarks that take us back to another Republican administration.

All of these dire economic reports--the most since...the worst since...the biggest decline since...

They all go back to when a Republican was in the White House.

[Mrs. Overall]

15. Exactly! It always goes back to either Reagan or Poppy Bush.

[David__77]

12. And it's not passing through yet to down to the distribution level.

But surely it will.

[Purveyor]

13. Our local farmers market just opened with sweet corn selling at $4.80doz.

Last year it was $4.

According to my public school math, that is 20% "inflation"...

[NewJeffCT]

14. quit whining you losers!

it's all in your head!!!

[undergroundpanther]

16. Now we know why

The fed stopped publishing the M3 index,they didn't want the TRUTH of how bad it is,getting out too soon.They had to ensure we were as fleeced as we could be first.


The M3 index is a report published by the United States Federal Reserve to keep track of the money supply. This is a very important report which helps investors and economists track inflation and how many U.S. dollars are in circulation.

Unfortunately, on March 23, 2006 it was decided to stop publishing this report.

http://www.asknabloid.com/what-is-the-m3-index/

[Earth_First]

17. Question is, just who IS privy to seeing the M3 numbers that the rest of us have been denied? n/t

[Lone_Star_Dem]

18. kick

[eppur_se_muova]

19. US inflation quickest in 17 years

Source: BBC

US inflation accelerated at its fastest pace in 17 years in June, official figures have shown, driven higher by surging energy prices

Consumer prices were 5% higher than a year ago and rose 1.1% on a monthly basis, the Labor Department said.

Federal Reserve boss Ben Bernanke has warned that the threat of rising inflation has intensified recently.

Minutes from the Fed's latest meeting on interest rates indicated the next move in borrowing costs could be up.



Read more: http://news.bbc.co.uk/2/hi/business/7509729.stm

---

If you see this in the US media, please post. I'm curious as to how much they will lag the BBC.

[Fed_Up_Grammy]

20. It's tighten your belt time. We survived it 17 years ago and we'll

survive it now.

[undeterred]

21. Is there ever de-flation?

[DJ13]

22. ........only in wages

[David__77]

23. Briefly during certain months in the late 90's. May have carried over to the early 2000's.

It has happened. During the Great Depression there was plenty of deflation, I presume related to "decreased demand." Funny how "demand" refers to the demand with dollars behind it and not the demand of the hungry or homeless...

[LaPera]

24. In other words, the fastest since the last republican pappy Bush was in office.