Wholesale Prices in U.S. Unexpectedly Rise on Higher Food Costs

[Purveyor]

Source: Bloomberg

By Victoria Stilwell
February 17, 2016 — 8:30 AM EST

Wholesale prices in the U.S. unexpectedly increased in January as higher food costs more than made up for the plunge in energy.

The 0.1 percent gain in the producer-price index followed a

0.2 percent decline in December, Labor Department figures showed Wednesday in Washington. Wholesale prices were down 0.2 percent from January 2015.

Inflation has been muted for much of the past few years, exacerbated recently by a continued drop in oil prices. As that decline stabilizes and the labor market strengthens, Federal Reserve policy makers are betting that inflation will drift closer toward their goal.

“Over the medium term, depending on how long you take that out, hitting the 2 percent target should be pretty achievable,” Brian Jones, senior U.S. economist at Societe Generale in New York, said before the report.

Read more: http://www.bloomberg.com/news/articles/2016-02-17/wholesale-prices-in-u-s-unexpectedly-rise-on-higher-food-costs

[hobbit709]

1. The milk I buy went from $3.18 to $3.97 for a half gallon about 10 days ago.

[forest444]

4. That's "1% inflation" for you.

The Commerce Department's inflation data have been a joke ever since Rove started tampering with them during Dubya's 2004 reelection campaign (remember the "always 3% inflation"?).

I remember reading something about a CIA estimate leaked just after Bush left office that showed that inflation had been 6% ever since the Iraq invasion - and that it had reached 16% in 2008 (when oil broke through $140 a barrel at one point).

They weren't kidding.

[oldtime dfl_er]

2. Food is expensive!

I've been alarmed at how quickly the price of most food is rising. I don't even eat meat, so I don't know about that, but I do know that my grocery bill rises every month. I'm no expert by any means, but I would have thought that with lower fuel costs, the price of most goods would at least hold steady. But what do I know...

[Myrina]

5. Gasonline, also ...

... prices at the pump have gone up about 40c/gal where I am in just the last week.

Are the corporations making one last desperate grab for our money?

[JustABozoOnThisBus]

7. And when food is diverted into production of fuel, food prices soar.

But ethanol seems to be increasing in use. There is talk of "regular" gas going from 10% ethanol to 15%.

[cstanleytech]

8. Ya the prices are rising but the grocery stores like Publix, Walmart and just

about every other chains employees arent seeing an increase in their pay though oddly enough the higher ups at the corporate level for those companies are seeing some nice bonuses.......nice enough that they can buy a nice mansion or two with it and still have some change left over.

[Bigredhunk]

3. Hmmm

I always thought it was funny how they used rising fuel costs as an excuse to raise food prices over the last 10 years (esp when gas hit its peak). Gas prices go really low, and the food prices never drop though.

Groceries are insanely expensive, especially with the shrink ray crap. A "regular-sized" bag of Lay's chips is down to, what, 7.5 ounces or something? Not that chips should be a part of your diet anyway, but it's insane how much some of this packaging has been shrunk down (invisible indentions on the bottom, for example). Maybe the chip thing has something to do with Frito Lay having more than 50% of the entire chip market, IDK.

TV is insanely expensive too. Our Dish Network bill is now $135/month, and we get no premium movie packages. A year ago we got at least 3 premium movie packages 1/2 off, loads more channels, and we were only paying $138. It seems like every time you drop something from your package to save $$, within 6 months to a year the price of your less expensive package increases, leaving you paying what you were paying before the cut (i.e. they're going to get their $$ from you one way or another). Here's what we pay:

$80/month for America's Top 200 (was $75 until this month)
$12/month DVR service
$12/month for one Hopper (the other Hopper is "free&quot
$7/month for one Joey
$7/month for 2nd Joey
$8/month for Protection Plan (will be dropped in 6 weeks...have to keep it 6 months to avoid the early cancellation penalty...used to only have to keep it 3 or 4 months to avoid early cancellation penalty)
+ taxes

We could easily cut the cord as we're already paying for Netflix, Hulu, & Amazon Prime + we have decent internet. But sports really make it tough. In the fall it's the Bears. In the winter it's Iowa Basketball. In the spring/summer it's the Cubs. Still, there's not one bill I pay (including groceries) that pisses me off more than when I pay my Dish bill every month. We watch fewer than 10 channels regularly. I feel like it should cost $70/month. It's almost twice that.

[Myrina]

6. I made myself cut the cord a year ago ...

... I have a digital antenna, Amazon Fire, Sling & Netflix .... I've found ways to watch my Blackhawks ... either by making myself go to the gym to catch the cable channels there (win-win because I'm spending time on the treadmill instead of the sofa) or by seeking out a Hawks-friendly pub with NHL Center Ice on the big screen (win-win because now I'm actually meeting & talking to people!)

For the odd times that games are late or I just don't want to head out/bad weather, I listen to the WGN radio stream online. Close enough for me.


It can be done ...

[GummyBearz]

9. There has been higher than reported inflation in everything except wages since 2006

Everything you need to buy gets more expensive...


Rent (5-10%/year), check
Gas (100% at one point), check
Food (no idea but its obviously been climbing), check
COLLEGE TUITION (it was being raised 10% EVERY QUARTER the last year I was in school), major fucking check
Housing (we all know how crazy the bubble was, no need to try putting a number on it), check


Pay increases for middle class jobs? about 0-2%... wow. My salary is 20% higher than it was 10 years ago, but my rent was about 200% higher than it was 10 years ago, gas is higher nearly 60% even after the gigantic oil plunge (Was $1.60, now just under $3.00).

So it costs more to eat, sleep, drive to work, get an education....... but there's no fucking inflation because the labor department wants to paint a rosy picture for who? Who is buying this garbage??

[Dont call me Shirley]

10. No cola for social security recipients this year, but higher and higher necessity costs. That is

fucked up!

[Number9Dream]

12. Couldn't have said it better... no cola sucks!

Shame on the Bureau of Labor Statistics!

[awoke_in_2003]

11. "Inflation has been muted for much of the past few years"

that is a crock of shit. The government has been reporting falsely for quite a long time so they don't have to do COLA increases.