Posts filed under “Energy”
After too many months of inflation data telling anyone with a barely functioning cerebral cortex that significant price inflation was at hand, this month seems to have jarred the denialists into a very belated recognition of reality.
As the delightful chart porn above shows, the costs of materials for food, energy and finished goods is up significantly.
"Prices paid to U.S. producers rose
more than twice as much as forecast in January, pushed up by
higher fuel, food and drug costs, signaling inflation may keep
accelerating even as growth slows.
The 1 percent increase followed a 0.3 percent drop in
December, the Labor Department said in Washington. The median
forecast in a Bloomberg News survey of economists was for a 0.4
percent gain. Excluding food and energy, so-called core
wholesale prices climbed 0.4 percent, the most in almost a year."
Here’s the money quote from BLS:
"From January 2007 to January 2008, the index for finished goods moved up 7.4 percent. Over the same period, prices for finished energy goods climbed 22.6 percent, the index for finished consumer foods rose 8.3 percent, and prices for finished goods other than foods and energy advanced 2.3 percent. For the 12 months ended January 2008, the index for intermediate goods increased 8.8 percent, and prices for crude goods jumped 31.3 percent."
Jeebus! Finished energy products, +22.6%! Finshed consumer goods, +8.3%
Lag this . . .
Producer Price Indexes – January 2008
Producer Prices in U.S. Increase More Than Forecast
Bloomberg, Feb. 26 2008