CPI - +.3% for feb

[swag]

I was wrong, consensus was right:

U.S. February Consumer Prices Rise 0.3%; Core Rate Rises 0.2%
March 17 (Bloomberg) -- Prices paid by U.S. consumers rose 0.3 percent in February, led by higher costs for gasoline and medical care, a government report showed. Excluding energy and food, core prices increased at the same pace as a month earlier.

The rise in the consumer price index followed a 0.5 percent gain in January that reflected the biggest increase in energy costs since the Iraq War, the Labor Department said in Washington. Core prices rose 0.2 percent and were 1.2 percent higher in the 12 months ended in February. The year-over-year increase compares with a 1.1 percent rise in each of the previous three months, the smallest since 1966.

``Prices have stopped falling, but they aren't likely to rise much either,'' said Ethan Harris, chief economist at Lehman Brothers Inc. in New York, before the report. ``Companies are responding to cost pressures by desperately seeking other ways to cut costs'' rather than raising prices. ``That psychology makes a low-inflation environment very sticky and persistent.'' Lehman economists were the second most accurate forecasters of consumer prices last year, according to a survey by Bloomberg Markets magazine.

[papau]

1. 3.6% is a faster rate than last years actual

and it is too early to see effects of weak dollar on PPI flow though to CPI.

Only export of inflation to rest of world via trade deficit is helping.

But that process seems changed a bit this time.

[Frodo]

2. Not really. I don't see how you are making the comparisson.

It's easy to multiply the month's number by twelve, but what do you think it indicates?

The total for the 2/03-2/04 year was around 1.5%-2% and the comparable figure from last Febuary was around TWICE as high at .6 (did that mean 7.2% inflation for the last year?)

[papau]

5. Oh I agree - just playing with 12 times - but I do expect that at some

point soon our trade deficit will stop being effective in exporting our inflation away.

[whistle]

3. I prefer to put inflation on a personal level...

...and as I see it, the basic costs of my necessities are going up. Food, gasoline, clothing (replacement type not luxuries, i.e. underwear, socks, shoes, casual pants, etc.), entertainment (DVD rentals, movie tickets), dining out, telephone services, utilities, local taxes, bus transportation, home maintenance, service costs, replacement parts, health insurance (very big one), etc. These are hitting me in my pocket book much harder than any .2% to .3% CPI. But correct me here if I am misinterpreting the numbers. A .2% monthly rate is 2.4% annual inflation while a .3% monthly rate is 3.6% annual inflation, is it not? That is a 50% increase in inflation I believe. Also, the banks are only paying .006% annual interest on savings accounts, but if you invest in a three year $100,000.00 CD, they'll give you 4.5% to 6.0%. The little guy is getting screwed by my calculations.

The government numbers hid the real impact of price increases by putting the so-called market basket of goods and services prices into a big aggregate pool and spitting out a nice low index that suits their purposes. I'd like to see the real impact of inflation by economic class (low, middle, upper and very high) rather than this watered down, fictitious aggregate number that the re-pug government uses to minimize annual social security increases. :kick:

My pay has not gone up in over four years and I work longer hours just to make ends meet. The biggest thing I've accomplished during this economic depression is that I have learned to make due with much less. I have paid down the bulk of my discretionary debt (i.e. all credit card and consumer debt is gone and now I have only my house payment and auto payment). But, I have no savings to speak of except a retirement plan that I can't take out yet for five years without substantial penalty and social security. I have worked continuously for 35 years and never had a missed pay check. Now, I feel very insecure and know that if I loose my job at my age, I will have a very hard time finding a new job that will pay for the skills and experience I have. A prolonged unemployment, which I have never experienced since December 1969, could result in my loosing a considerable part of my retirement that I had banked on over the years. I live in a middle class neighborhood in the deep south and many of my neighbors are feeling marginalized and frightened. Besides my full-time job, I work as many extra hours doing independent contract work as I can, but the extra money is only marginal compared to what my skills ought to be able to earn. I feel minimized and very vulnerable at this time. So the GreenSPAM and BushCo reassurances of prosperity around the corner and just ahead, ring very hollow with me.:scared:

[mhr]

4. You Are Lucky, Imagine How I Feel, Unemployed - 46 Months

Many do not like to think the worst.

After living the worst, one can see many outcomes.

Few of these are promising.

We have a few on these boards that like ivory tower ruminations.

Your street level analysis is the way to go.

How is all of the economic uncertainty hitting main street, not wall street?

That is the question!

[swag]

6. Main Street effect?

Well, real wages declined .1% in February.

For those still working, that is.