Wholesale inflation inches up 0.1% - (CPI coming out today)

[WePurrsevere]

Analysts say surging fuel prices to make the relief short-lived

WASHINGTON -- Falling food prices helped keep inflation at the wholesale level contained in July. But a relentless rise in energy prices was expected to make the relief short-lived.

The Labor Department reported yesterday that wholesale prices increased a slight 0.1 percent in July, far below the 0.5 percent jump in June. The improvement reflected a retreat in food prices, which had surged 1.4 percent in June only to decline 0.3 percent in July.

<snip>

That development sent stock prices soaring as investors believed it could provide further support for those Federal Reserve officials arguing that inflation is beginning to slow as the economy slows.

<snip>

But private economists were not as convinced, noting that energy prices were up sharply and the decline in the core rate of inflation was heavily influenced by special factors, such as a weakness in light truck sales and continued declines in computer prices.

Boston Globe Link: http://tinyurl.com/mlw3l

(edited to finish title/thought for clarity... sorry) :hangover:

[papau]

1. today we get the consumer inflation number - should be interesting. n/t

n/t

[WePurrsevere]

2. CPI just out for July (data& link)

CPI-U, US City Average, All Items:

History (NSA) +0.3% in Jul 2006

History (SA) +0.4% in Jul 2006

History (NSA) +4.1% since Jul 2005

CPI-U, US City Average, All Items Less Food and Energy:

History (NSA) +0.1% in Jul 2006

History (SA) +0.2% in Jul 2006

History (NSA) +2.7% since Jul 2005

CPI-U, US City Average, Medical Care:

History (NSA) +0.3% in Jul 2006

History (SA) +0.2% in Jul 2006

History (NSA) +4.0% since Jul 2005

CPI-W, US City Average, All Items:

History (NSA) +0.3% in Jul 2006

History (SA) +0.5% in Jul 2006

History (NSA) +4.3% since Jul 2005

Link: http://www.bls.gov/cpi/


(edited to add bold & link))
NSA - not seasonally adjusted
SA = seasonally adjusted

[papau]

6. 0.2 and 0.4 are both above expectations and above Fed comfort zone

http://www.bloomberg.com/apps/news?pid=20601087&sid=aOrkFF85iASk&refer=home

[lonestarnot]

4. Interesting to see how the numbers will be manipulated or which set of

numbers they will tout to the public.

[swag]

3. Actually, that is PPI.

But thanks for posting it.

[WePurrsevere]

5. Thanks, I had a fog out & didn't finish my thought correctly in title. CPI

is now out... see post #2.