Biggest increase in PP! since 1974 !

[uscitizen]

Wholesale Prices Surge in November


Dec 19, 9:05 AM (ET)

By MARTIN CRUTSINGER


WASHINGTON (AP) - Inflation at the wholesale level surged by the largest amount in more than three decades in November, reflecting higher prices for gasoline and a host of other items.

The Producer Price Index, which measures inflation pressures before they reach the consumer, was up 2 percent last month, the biggest advance since a similar increase in November 1974, the Labor Department reported Tuesday.

Economists had been expecting a rebound in wholesale prices following two months of big declines. However, the 2 percent jump was four times bigger than the 0.5 percent increase they had forecast. Even excluding volatile energy and food prices, core inflation posted a 1.3 percent advance, the biggest jump in 26 years.

http://apnews.myway.com/article/20061219/D8M3V3FO0.html

 

[Gaffer]

You can thank the minimum wage increase for that. Companies are gearing up to pay for the higher wages. The costs of things will rise as each incriment of the minimum wage takes effect.

 

[Cypress]

Gasoline prices appear to have started going up, on or around November 8th.

 

[Cypress]

You can thank the minimum wage increase for that. Companies are gearing up to pay for the higher wages. The costs of things will rise as each incriment of the minimum wage takes effect.

You can thank the minimum wage increase for that

Uhh, the minimum wage didn't go up. That legislation didn't pass.

 

[uscitizen]

So companies raise prices before costs go up Gaffer ?
Does not the energy cost increases have anything to do with this ?

 

[OrnotBitwise]

You can thank the minimum wage increase for that. Companies are gearing up to pay for the higher wages. The costs of things will rise as each incriment of the minimum wage takes effect.

Unlikely, since none has gone into effect yet, at least not at the federal level.

Actually, contrary to mythology popular on the right, labor costs don't generally make up even the majority of wholesale prices. In food production, for example, labor accounts for less than 10% of wholesale price -- generally around 7%, I believe.

 

[uscitizen]

Tax cuts caused this ? Well contributed anyway.
But then tax cuts can only cause good things to happen right ?

 

[Damocles]

You can thank the minimum wage increase for that

Uhh, the minimum wage didn't go up. That legislation didn't pass.

It did in many states. In fact, it did in my state...

 

[uscitizen]

Was it 16 states Damo ? I forget. Darn! with the PPI zooming along with only 16 states minimum wage increases pushing it, think where we would be if it had passed on the federal level

 

[Gaffer]

Yes it the PPI would have gone up even more had it been federal. 16 states means the companies nationwide are going to be effected. They have to pay out more for employees so everyone will share the cost.

If you know your going to have to pay more for something starting next month wouldn't you find a way, ahead of time, to get the money to offset the expense. The thing about laws is they have a set date to go into effect and in this case companies and employers have a chance to offset the expense ahead of time.

You hate the government so much yet you want it to control how much people make. whatever the minimum wage is set at will not be enough to live on as the cost of living will increase with it.

 

[uscitizen]

Wages have not been keeping up with inflation, so whassup with that ?

 

[HipLew]

i'll make it easy for you to see why this is nothing:

Economists
had
been
expecting
a rebound
in wholesale prices
following two months of big declines!!!!!!!!!!!!!!!!!!!!!!

 

[uscitizen]

I will wait and see.

 

[HipLew]

me too. if you factor out imported goods an services, i think ou would find that inflation for things here (food, housing, fuel, local/state taxes, etc0 is much higher than the figures indicate, and has been for years.

the DEFLATION of goods and services form imports has effectively masked large infaliton rates for domestically produced goods and services.

 

[uscitizen]

me too. if you factor out imported goods an services, i think ou would find that inflation for things here (food, housing, fuel, local/state taxes, etc0 is much higher than the figures indicate, and has been for years.

the DEFLATION of goods and services form imports has effectively masked large infaliton rates for domestically produced goods and services.

You have a good grasp of the reality of the situation Hip
So wally world has been a good buddy to make the economy look better ?

 

[HipLew]

You have a good grasp of the reality of the situation Hip
So wally world has been a good buddy to make the economy look better ?

Yes, it has. wallyworld has indeed helped the average (and poor) consumers by keeping prices low on the goods they sell.

 

[uscitizen]

Yep, wally world has been good economy friends for both Clowntoon and shrub....But this is a false short term distortion of economic reality, and does not help our longer term economic outlook. But hey all we seem to care about now-a-days is the profit increase for the next quarter.