Wholesale prices dip, new home construction rises

[NJmaverick]

Source: Associated Press,

WASHINGTON – Wholesale prices fell in April, reflecting declines in energy and food, while construction of new homes rose more than expected.
But a drop in building permits, a gauge of future activity, along with the expiration of a government tax credit for home purchases suggest the construction gains could fade soon.
Wholesale prices edged down 0.1 percent last month, the second decline in the past three months, the Labor Department said Tuesday. Core inflation, which excludes energy and food, rose 0.2 percent, slightly faster than expected. But over the past year, core prices are up just 1 percent.
The absence of inflation pressures means the Federal Reserve can continue to keep interest rates at record lows to bolster the economic recovery.

Read more: http://news.yahoo.com/s/ap/20100518/ap_on_bi_go_ec_fi/us_economy;_ylt=Am5aIbuB6zP7LKGXi8woQeSs0NUE;_ylu=X3oDMTFmajdpZWFrBHBvcwMxMDIEc2VjA2FjY29yZGlvbl9idXNpbmVzcwRzbGsDd2hvbGVzYWxlcHJp

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More good news

[earthside]

1. Good new is where?

We've got two million vacant homes for sale right now ... so construction of new homes sounds like re-inflating the housing bubble.

In any event, since the government subsidy for home buyers has run out, even this new building is dropping like a rock.

And a wholesale price dip simply means lack of demand -- ie., the recession continues.

[NJmaverick]

2. That's one city, we are talking nation wide

[earthside]

8. Nationwide Excess Inventory

Simply put, the country already has too many houses, the legacy of wide-scale overbuilding during the boom. The Census Bureau says there are two million vacant homes for sale, about double the historical level. Fewer new households, moreover, are being formed as families double up for economic reasons, putting a further brake on demand.

Building Is Booming in a City of Empty Houses - NYT; May 15, 2010

[hobbit709]

3. Wholesale prices don't mean diddly at the grocery store.

I just passed on the $1.89/lb onions that the last time I bought some were 79 cents.

[dmallind]

4. Which are data? Which is anecdotal? NT

[hobbit709]

5. My personal data-I know what things cost me.

If you want to quibble about that, go ahead.
On a personal level, I have noticed that the "official" government figures have never matched what goes out of my wallet.

[NJmaverick]

6. Well that settles it, if onion prices are up we are all doomed

[Donnachaidh]

17. ahh there goes that little habit of dissing anyone who doesn't lockstep

Blue sweater tourettes. Get help.

[dmallind]

11. So if I find a grocery item that is cheaper it means inflation works differently for me and you?

That way madness lies. "Personal data" is an anecdote. It does not refute wholesale pricing numbers.

[brentspeak]

14. Wholesale finished food prices have risen 2.2% since Feb

http://stats.bls.gov/news.release/ppi.nr0.htm

Wholesale food prices are http://www.marketwatch.com/story/wholesale-prices-jump-07-on-higher-food-prices-2010-04-22?dist=beforebell">up 6.8% since last year.

You'll have a hard time finding many grocery items that have been getting cheaper.

[NJmaverick]

7. Well that settles it, if onion prices are up we are all doomed

[hobbit709]

9. Onion prices were just one of many that have gone up

Look at the cost of staple food items. Everything I buy at the store has risen 10-25% in the last couple of months.
It's gotten so that the items at the natural food stores are competitive with the regular grocery store.

[NJmaverick]

10. The statistics suggest that food prices were downward rather than upward

maybe it's time to look into shopping at a different market

[hobbit709]

12. "There's lies, damned lies, and statistics"

These price increases are at every grocery in my end of town. I doubt it's any different anywhere else in Austin.

[brentspeak]

16. You are very correct.

Wholesale food prices in NJ have been steadily going up for years, as well -- the same story all over the nation.

[brentspeak]

15. Maybe it's time you start looking at the statistics

http://stats.bls.gov/news.release/ppi.nr0.htm

Wholesale finished food prices up 2.2% since Feb. And that's not factoring in the massive cumulative inflation of food prices that's been happening for the past 20 years.

[Donnachaidh]

18. maybe it's time for the stat lover to get out and SHOP rather than bloviate about

figures gathered from sources.

[CountAllVotes]

13. they were $2.89 a lb.

at the local co-op! YIKES!

:kick: