The Labor Department reported Tuesday that its Producer Price Index, which measures wholesale prices, jumped 1.1% in March, the second biggest gain in the past 33 years and much higher than forecasts.See what I mean about eating or driving? Just cut those two things out and your finacial house will be fine. With obesity such a problem in the United States we should look at this as a sign from God. Since we won't stop eating so much on our own we are getting a helping hand from the Federal Reserve.
The so-called "core" PPI number, which excludes food and energy prices, rose a more modest 0.2%, in line with expectations.
The Fed has slashed interest rates numerous times since last September to try to get the economy out of this severe funk. But so far, the most notable consequences of the rate cuts are a drastically weakened dollar and surging commodity prices.The economy is a mess yet John McCain is even in polls with Clinton or Obama. Have the American people lost their minds? Have they forgotten the peace and prosperity of the 90's. Are they really that stupid to want to continue these disastrous policies? We are closer to depression era financial conditions than at any time since the great depression. Wake up before its too late and everything that has taken so long to build will be forever ruined.
Oil prices hit a new record high Tuesday, as did the prices per gallon of gas and diesel fuel.
In the past twelve months, sugar prices are up 27%. Corn prices have surged 67% and wheat prices have shot up 73%.
The argument that economists should look more at "core" inflation has to ring hollow with consumers who are taking a big financial bite every time they go food shopping and fill up their car's gas tank.