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Drudge Retort: The Other Side of the News
Tuesday, September 13, 2022

Inflation at the wholesale level climbed 8.3% last month from August 2020, the biggest annual gain since the Labor Department started calculating the 12-month number in 2010. The Labor Department reported Friday that its producer price index " which measures inflationary pressures before they reach consumers " rose 0.7% last month from July after increasing 1% in both June and July. Inflation has been stirring as the economy recovers from last year's brief but intense coronavirus recession. Supply chain bottlenecks and a shortage of workers have pushed prices higher. Federal Reserve Chair Jerome Powell has called the price spikes temporary and has warned of the dangers of the central bank raising its benchmark interest rate (now near zero) prematurely, potentially stalling the economy's comeback.

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"Since the pandemic, supply chains have never been the same and likely won't normalize for at least six months," said a report by Contingent Macro Advisors. ""Only then will we (and, more importantly, the Fed) get a true sense of the trend rate of producer inflation.

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Damn! Sucks.

#1 | Posted by BellRinger at 2022-09-13 09:20 AM | Reply

And that's with Gas going down about a dollar a gallon. Fall and Spring are going to be tough on the food prices/availability.

"Build Back MoreExpensive"

#2 | Posted by lfthndthrds at 2022-09-13 09:23 AM | Reply

It looks like another 75 basis points hike next week.

#3 | Posted by LampLighter at 2022-09-13 12:58 PM | Reply

U.S. inflation higher than expected, cementing odds of big Fed hike
www.bnnbloomberg.ca

...The consumer price index increased 0.1 per cent from July, after no change in the prior month, Labor Department data showed Tuesday. From a year earlier, prices climbed 8.3 per cent, a slight deceleration, largely due to recent declines in gasoline prices.

So-called core CPI, which strips out the more volatile food and energy components, advanced 0.6 per cent from July and 6.3 per cent from a year ago. All measures came in above forecasts. Shelter, food and medical care were among the largest contributors to price growth....

Food costs increased 11.4 per cent from a year ago, the most since 1979. Electricity prices rose 15.8 per cent from 2021, the most since 1981. Gasoline prices, meanwhile, fell 10.6 per cent in August, the biggest monthly drop in more than two years.

Shelter costs -- which are the biggest services' component and make up about a third of the overall CPI index -- continue to rise. Overall shelter costs increased 0.7 per cent from July and 6.2 per cent from a year ago, both the most since the early 1990s....


Shelter costs are a difficult one to get to drop. Usually the Fed counters inflation by raising interest rates. But rising interest rates makes the loan-intensive real estate market operational expenses (i.e., shelter costs) more expensive. That's a conundrum the Fed needs to figure out a solution for.


#4 | Posted by LampLighter at 2022-09-13 01:31 PM | Reply

-But rising interest rates makes the loan-intensive real estate market operational expenses (i.e., shelter costs) more expensive.

not if it lowers the real estate prices.

#5 | Posted by eberly at 2022-09-13 01:40 PM | Reply

Meanwhile, American Ex-President steals top secret documents...

#6 | Posted by LegallyYourDead at 2022-09-13 01:47 PM | Reply

@#5 ... not if it lowers the real estate prices. ...

If it lowers them enough, then the overall cost could come down.

But what seems to happen is the prices drop just enough to maintain the same mortgage monthly payment level, give or take. So the result is that the monthly cost doesn't really change all that much as the Fed raises interest rates.

There are other factors involved, such as the ability of home buyers to buy a house because of increasing other expenses, whether it's a buyer's or a seller's market for an area, etc.

And then there is the whole rental market, which has been experiencing significantly rising costs. That market has its own similar, but different, set of cost factors.

I don't envy the Fed in the task of trying to get shelter costs lower.


#7 | Posted by LampLighter at 2022-09-13 01:52 PM | Reply

from August 2020, the biggest annual gain

Hmmm that's odd ...

Looks at top

September 10, 2021

What ---- site fed this to you knowing you wouldn't check the date of publication?

#8 | Posted by jpw at 2022-09-13 02:11 PM | Reply

"September 10, 2021"

A year late you fricking moron.

#9 | Posted by LegallyYourDead at 2022-09-13 02:15 PM | Reply

@#8

Phew, I thought you were talking about the article I cited in #4. I double checked, that one is hours old...

#10 | Posted by LampLighter at 2022-09-13 02:22 PM | Reply

Here is todays news. just a fww links, with the same story:
www.foxbusiness.com
www.cnbc.com
https://www.nbcnews.com/business/economy/inflation-august-2022-consumer-prices-of-food-gas- rcna47291

#11 | Posted by gracieamazed at 2022-09-13 03:38 PM | Reply

SSDD with the news. I was trying to link an acceptable news source as it came across as breaking news on Fox. So now focus on todays news.

#12 | Posted by gracieamazed at 2022-09-13 03:41 PM | Reply

A year late you fricking moron.

That's pretty funny.

#13 | Posted by REDIAL at 2022-09-13 04:54 PM | Reply

It's not inflation. It's price gouging and profiteering by CEO's and executives, who need to be thrown in prison for their crimes.

#14 | Posted by a_monson at 2022-09-13 05:16 PM | Reply | Funny: 1

If it lowers them enough, then the overall cost could come down.

#7 | POSTED BY LAMPLIGHTER AT 2022-09-13 01:52 PM | FLAG:

"Could". I find it really unlikely. To lower home values you have to get really ghetto. The poorest of the poor neighborhoods in South side Chiraq with $1 lots level of ghetto.

#15 | Posted by sitzkrieg at 2022-09-14 07:57 AM | Reply

To lower home values you just need to have buyers stop buying.

Are you an Econ major?

Bwahahahaha.

#16 | Posted by LegallyYourDead at 2022-09-14 04:35 PM | Reply

snifff....

ewwww smells like golden gracie

urine and stupid.

not a good smell gracie.

#17 | Posted by billy_boy at 2022-09-14 10:24 PM | Reply

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