Consumer Prices Rise at Fastest Pace in Quarter Century

By Howard Schneider and Renae Merle
Washington Post Staff Writers
Wednesday, July 16, 2008; 11:42 AM

Soaring food and energy costs pushed consumer prices up in June at the
fastest rate in a quarter-century, further pressuring households already
buffeted by rising joblessness, falling home prices and a sinking stock
market.

The 1.1 percent rise in prices between May and June was almost double
the rate of the prior month and helped push consumer prices up by 5
percent since June of last year -- a faster than expected rate that
could further complicate the choices confronting federal policymakers.

Federal Reserve Chairman Ben S. Bernanke said yesterday in Congress that
inflation was a mounting concern, particularly given the escalation in
prices for crude oil, basic food items and other commodities.

But growth has also ebbed, and Bernanke yesterday deemed it a
"significant challenge" balancing between steps that might support
growth -- such as lowering interest rates -- and those that might
control rising prices.

Today's report from the Bureau of Labor Statistics documented the trend:
Consumer prices overall are up 5.5 percent for the first half of the
year, measured on a seasonally adjusted annual basis, compared to a 4.1
percent jump in 2007. In the past three months alone, consumer prices
have jumped 7.9 percent on an annualized basis.

Energy costs accounted for much of that, jumping roughly 30 percent, on
an annualized basis, since the start of the year. Food prices also
continued their steady rise, increasing at an 8 percent annualized rate
during the past three months.

So-called core inflation -- which excludes food and energy -- was more
tempered, increasing at a 2.5 percent rate during the past three months.
But that was also substantially faster than the three months before.

"The June uptick in the core rate provides an early indication that the
tidal surge in energy and other commodity costs are trickling through to
consumer prices at large," Kenneth Beauchemin, U.S. economist for Global
Insight, said in a research note today.

The inflation trend as well as the outlook for economic growth means
that the Fed will likely not hike interest rates until 2009, he said.
"Indeed, the remote chance for financial disaster in the coming months
keeps a rate cut on the table," Beauchemin said.

Even though economists and some policymakers focus more on core
inflation, the jump in the cost of basic goods such as food and gasoline
still left consumers with less purchasing power. In a separate report,
the Department of Labor said real wages dropped by nearly 1 percent in
June, as the rise in prices more than offset a slight increase in wages.

That may undercut consumer spending, a mainstay of the U.S. economy, at
a time when growth is already at a crawl.

"HK" wrote in message
...


Consumer Prices Rise at Fastest Pace in Quarter Century

By Howard Schneider and Renae Merle
Washington Post Staff Writers
Wednesday, July 16, 2008; 11:42 AM



It's news, so it's being written about.

What's not often said is that the economic problems are global in nature
..... many believe due to a natural 75 year cycle.

Although tough to us by comparison of 10 years ago, the USA is actually in
better shape overall in terms of the general economy, unemployment, growth
rate, etc. than most of the rest of the free world. We still have the
lowest fuel prices other than the local prices in oil producing nations.

It will adjust naturally. And once focus is placed on increasing the value
of the dollar (with some risk to inflation), the USA's economy will come
around smartly.

Eisboch

Probably not.

Eisboch wrote:
"HK" wrote in message
...

Consumer Prices Rise at Fastest Pace in Quarter Century

By Howard Schneider and Renae Merle
Washington Post Staff Writers
Wednesday, July 16, 2008; 11:42 AM



It's news, so it's being written about.

What's not often said is that the economic problems are global in nature
.... many believe due to a natural 75 year cycle.

Although tough to us by comparison of 10 years ago, the USA is actually in
better shape overall in terms of the general economy, unemployment, growth
rate, etc. than most of the rest of the free world. We still have the
lowest fuel prices other than the local prices in oil producing nations.

It will adjust naturally. And once focus is placed on increasing the value
of the dollar (with some risk to inflation), the USA's economy will come
around smartly.

Eisboch




Gawd, I just love these GOP rationalizations...

"HK" wrote in message
...

Eisboch wrote:

"HK" wrote in message
...

Consumer Prices Rise at Fastest Pace in Quarter Century

By Howard Schneider and Renae Merle
Washington Post Staff Writers
Wednesday, July 16, 2008; 11:42 AM



It's news, so it's being written about.

What's not often said is that the economic problems are global in nature
.... many believe due to a natural 75 year cycle.

Although tough to us by comparison of 10 years ago, the USA is actually
in better shape overall in terms of the general economy, unemployment,
growth rate, etc. than most of the rest of the free world. We still
have the lowest fuel prices other than the local prices in oil producing
nations.

It will adjust naturally. And once focus is placed on increasing the
value of the dollar (with some risk to inflation), the USA's economy
will come around smartly.

Eisboch


Gawd, I just love these GOP rationalizations...


You think the current economic problems are unique to the USA? Or that the
USA is responsible for the entire global economy? Our economy certainly
has an effect and influence, but it's also one of the reasons things aren't
worse worldwide.

I just love the narrow viewpoints expressed in the media. You really need to
stand back and think about it before you jump in and assume the sky is
falling. Forget the politicians. They only parrot what they think may
give their party an edge in November. Listen to the business people ...
those that run large corporations. They have a better handle on the true
state of the economy, it's problems, causes and cures.

Eisboch

wrote in message
...
On Wed, 16 Jul 2008 12:35:18 -0400, "Eisboch"
wrote:


"HK" wrote in message
...


Consumer Prices Rise at Fastest Pace in Quarter Century

By Howard Schneider and Renae Merle
Washington Post Staff Writers
Wednesday, July 16, 2008; 11:42 AM



It's news, so it's being written about.

What's not often said is that the economic problems are global in nature
.... many believe due to a natural 75 year cycle.

Although tough to us by comparison of 10 years ago, the USA is actually in
better shape overall in terms of the general economy, unemployment, growth
rate, etc. than most of the rest of the free world. We still have the
lowest fuel prices other than the local prices in oil producing nations.

It will adjust naturally. And once focus is placed on increasing the
value
of the dollar (with some risk to inflation), the USA's economy will come
around smartly.

Eisboch


Only problem is, while the US dollar is weak, foreigners are buying up
The U.S. When our economy revives, the results will go back to the
foreign investors. They will reap the rewards, not us. VW just
announced they are building a billion dollar plant in the U.S. They
are doing it because of the condition of the Dollar. It will provisde
some jobs, but the profits from their labors will be exported.

After you master Spanish, you need to start learning Japanese,
Chinese, and German, ASAP.



I agree. That's why the focus right now should be on building the value of
the dollar. Stop printing money.
There's the added risk of higher inflation, but it is the price to pay.

The politicians .... on both sides .... haven't got a clue.

Eisboch

"BAR" wrote in message
. ..


You mean listen to the evil corporate robber barons? What do they know
about world economics?



Let me tell you a little secret.

You don't build wealth and prosperity, individually or as a nation, by
working for a salary.
You build them by generating something of value.

Eisboch

Eisboch wrote:
"HK" wrote in message
...

Eisboch wrote:

"HK" wrote in message
...
Consumer Prices Rise at Fastest Pace in Quarter Century

By Howard Schneider and Renae Merle
Washington Post Staff Writers
Wednesday, July 16, 2008; 11:42 AM


It's news, so it's being written about.

What's not often said is that the economic problems are global in nature
.... many believe due to a natural 75 year cycle.

Although tough to us by comparison of 10 years ago, the USA is actually
in better shape overall in terms of the general economy, unemployment,
growth rate, etc. than most of the rest of the free world. We still
have the lowest fuel prices other than the local prices in oil producing
nations.

It will adjust naturally. And once focus is placed on increasing the
value of the dollar (with some risk to inflation), the USA's economy
will come around smartly.

Eisboch

Gawd, I just love these GOP rationalizations...


You think the current economic problems are unique to the USA? Or that the
USA is responsible for the entire global economy? Our economy certainly
has an effect and influence, but it's also one of the reasons things aren't
worse worldwide.

I just love the narrow viewpoints expressed in the media. You really need to
stand back and think about it before you jump in and assume the sky is
falling. Forget the politicians. They only parrot what they think may
give their party an edge in November. Listen to the business people ...
those that run large corporations. They have a better handle on the true
state of the economy, it's problems, causes and cures.

You mean listen to the evil corporate robber barons? What do they know
about world economics?

It will provide some jobs, but the profits from their labors will be
exported.

This ****s been going on in Canada for awhile. It makes me sick.
US Companies have been doing this in Canada as well, so the USA is not
guiltless.

wrote in message
...

On Wed, 16 Jul 2008 13:59:43 -0400, "Eisboch"
wrote:


The politicians .... on both sides .... haven't got a clue.

Eisboch


Many (but not all) politicians have a clue. However, they are more
interested in getting elected by telling people what they want to
hear, or furthering an agenda that appeals to their financial
supporters.



Sorta what I meant, although poorly put.

Eisboch