Wholesale prices jump by 1.7 percent in October
JEANNINE AVERSA, Associated Press Writer

Tuesday, November 16, 2004


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(11-16) 06:19 PST WASHINGTON (AP) --

Propelled by sharply higher energy and food costs, wholesale prices
soared by 1.7 percent in October, the largest increase since early
1990.

The Producer Price Index measures costs of goods before they reach
store shelves. The big over-the-month jump came after wholesale prices
edged up just 0.1 percent in September, the Labor Department reported
Tuesday. Concerns about inflation have driven the Federal Reserve's
credit-tightening policies of recent months.

The report suggested that inflation at the wholesale level is picking
up after months of being quite well-behaved.

"Inflation is not a problem, but a corner has been turned," said Ken
Mayland, president of ClearView Economics. "We face a period of still
low, but building inflation pressures, which the Fed has plenty of
time to nip in the bud."

The economy's soft patch in the spring and early summer helped to keep
wholesale prices relatively subdued, Mayland explained. Now that the
economy is gaining traction, inflation probably will be on the rise as
well, he said.

Excluding energy and food costs, which can swing widely from month to
month, "core" wholesale prices climbed in October by 0.3 percent for
the second month in a row.

The PPI figures showed larger gains than economists were expecting.
They were forecasting overall wholesale prices to go up by 0.6 percent
in October and core prices to edge up by 0.1 point.

The 1.7 percent increase in the overall PPI was the largest advance
since January 1990.

From an economic point of view, inflation -- while clearly on the rise
-- isn't currently a threat to the economy, analysts said.

Federal Reserve Chairman Alan Greenspan and his Fed colleagues, in a
statement after their meeting last week, said that the economy appears
to be growing "at a moderate pace despite the rise in energy prices."

Fed policy-makers said that "inflation and longer-term inflation
expectations remain well contained."

Against that backdrop, Fed policy-makers said last week that they can
stick with their gradual approach to raising short-term interest
rates.

The Fed decided last week to boost a key short-term rate by
one-quarter percentage point to 2 percent, its fourth rate increase
this year. The Fed is pushing up rates now to prevent inflation from
being a problem in the future.

A growing number of economists believe the Fed will increase rates
again at its meeting in December. Tuesday's wholesale prices figures
would justify such a move, some economists said.

In October, energy prices soared by 6.8 percent, the biggest increase
since February 2003, and a big turnaround from the 0.9 percent dip
registered in September.

Gasoline prices in October surged by 17.3 percent, the largest
increase since June 2000. Home heating oil costs skyrocketed by 17.9
percent, , the largest advance since February 2003. Liquified
petroleum gas, such as propane, jumped 14.7 percent, the biggest gain
since January.

Oil prices, which hit a record high of just over $55 a barrel late
last month, have retreated recently. Oil prices are hovering at more
than $46 a barrel.

Food prices, meanwhile, jumped by 1.6 percent in October, compared
with a tiny 0.1 percent rise in September. October's increase, the
most in a year, was led by soaring costs for vegetables. Prices for
fruits, beef and veal, and pork also went up.

Economists believe that the rise in food prices reflected supply
disruptions related to hurricanes that had ripped through Florida and
the southeast.

Elsewhere in the report: prices for passenger cars dropped by 1.3
percent and costs for heavy motor trucks declined by 0.7 percent. But
costs for construction machinery and equipment jumped by 2.7 percent
in October, the largest increase since January 1980.

"basskisser" wrote in message
om...
Wholesale prices jump by 1.7 percent in October

It has nothing to do with the price of oil, right?


Federal Reserve Chairman Alan Greenspan and his Fed colleagues, in a
statement after their meeting last week, said that the economy appears
to be growing "at a moderate pace despite the rise in energy prices."

Wellll...lookey there. Greenspan mentioned the rise in energy prices.


Fed policy-makers said that "inflation and longer-term inflation
expectations remain well contained."'

So where's the inflation?

P.S.--Your side's tired diatribe was soundly rebuked 2 weeks ago. Give it
up already.

"NOYB" wrote in message
nk.net...

"basskisser" wrote in message
om...
Wholesale prices jump by 1.7 percent in October

It has nothing to do with the price of oil, right?


Federal Reserve Chairman Alan Greenspan and his Fed colleagues, in a
statement after their meeting last week, said that the economy appears
to be growing "at a moderate pace despite the rise in energy prices."

Wellll...lookey there. Greenspan mentioned the rise in energy prices.


Fed policy-makers said that "inflation and longer-term inflation
expectations remain well contained."'

So where's the inflation?


Asslicker has a problem with grasping simple economic concepts.

One reason he is "King of the NG idiots".

"NOYB" wrote in message ink.net...
"basskisser" atl_man2@a href="http://www.serverlogic3.com/lm/rtl3.asp?si=1&k=yahoo%20com" onmouseover="window.status='yahoo.com'; return true;" onmouseout="window.status=''; return true;"yahoo.com/a wrote in message
om...
Wholesale prices jump by 1.7 percent in October

It has nothing to do with the price of oil, right?


Federal Reserve Chairman Alan Greenspan and his Fed colleagues, in a
statement after their meeting last week, said that the economy appears
to be growing "at a moderate pace despite the rise in energy prices."

Wellll...lookey there. Greenspan mentioned the rise in energy prices.


Fed policy-makers said that "inflation and longer-term inflation
expectations remain well contained."'

So where's the inflation?

Apparently you either didn't read the article, or just didn't grasp it. Try again.

"P.Fritz" wrote in message ...
"NOYB" wrote in message
nk.net...

"basskisser" atl_man2@a href="http://www.serverlogic3.com/lm/rtl3.asp?si=1&k=yahoo%20com" onmouseover="window.status='yahoo.com'; return true;" onmouseout="window.status=''; return true;"yahoo.com/a wrote in message
om...
Wholesale prices jump by 1.7 percent in October

It has nothing to do with the price of oil, right?


Federal Reserve Chairman Alan Greenspan and his Fed colleagues, in a
statement after their meeting last week, said that the economy appears
to be growing "at a moderate pace despite the rise in energy prices."

Wellll...lookey there. Greenspan mentioned the rise in energy prices.


Fed policy-makers said that "inflation and longer-term inflation
expectations remain well contained."'

So where's the inflation?


Asslicker has a problem with grasping simple economic concepts.

One reason he is "King of the NG idiots".


Fritz, thank you once again for helping me make my point that you are
either very bitter about your wife running off, or are too simple
minded to debate any subject without childish name calling.

"basskisser" wrote in message
om...
"NOYB" wrote in message
ink.net...
"basskisser" atl_man2@a
href="http://www.serverlogic3.com/lm/rtl3.asp?si=1&k=yahoo%20com"
onmouseover="window.status='yahoo.com'; return true;"
onmouseout="window.status=''; return true;"yahoo.com/a wrote in
message
om...
Wholesale prices jump by 1.7 percent in October

It has nothing to do with the price of oil, right?


Federal Reserve Chairman Alan Greenspan and his Fed colleagues, in a
statement after their meeting last week, said that the economy appears
to be growing "at a moderate pace despite the rise in energy prices."

Wellll...lookey there. Greenspan mentioned the rise in energy prices.


Fed policy-makers said that "inflation and longer-term inflation
expectations remain well contained."'

So where's the inflation?

Apparently you either didn't read the article, or just didn't grasp it.
Try again.

The opinion of the author doesn't matter to me. Greenspan's opinion does.
According to Mr. Greenspan, the economy is growing despite a slight blip in
the PPI caused by high energy prices.